U.S. oil major Chevron (CVX) has announced mixed financial results for this year’s second quarter due to lower refining margins.
The company also said that it is moving its corporate headquarters from San Ramon, California to Houston, Texas to be closer to the epicentre of the U.S. energy sector.
Chevron reported earnings per share (EPS) of $2.55 U.S., which missed Wall Street forecasts of $2.93 U.S.
However, revenue in the quarter of $51.18 billion U.S. beat the consensus expectation of $50.80 billion U.S. Sales were up 5% from a year earlier.
Chevron’s production segment posted a profit of $2.16 billion U.S., a 31% increase from $1.64 billion U.S. a year ago due to higher sales volumes and oil prices that rose this spring.
That growth was largely offset by profits for international production that declined 30% to $2.30 billion U.S. on lower sales and natural gas prices.
Overall, Chevron’s production rose 11% to 3.29 million barrels per day, lifted by record production in the Permian Basin of Texas.
The real drag on the company’s results was its refining business, which recorded a profit of $280 million U.S., a 74% year-over-year decline. International refining profits dropped 25%.
In terms of the relocation, Chevron said that chief executive officer (CEO) Mike Wirth will move to Houston by year’s end and that all corporate functions will be in Texas within five years.
Chevron is in the process of acquiring rival Hess Corp. (HES) for $53 billion U.S. The deal has run into regulatory and legal issues and is now unlikely to close before mid-2025, at the earliest.
The stock of Chevron has declined 5% over the last 12 months to trade at $152.62 U.S. per share.
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