Michael Wirth, CEO of Chevron.
Adam Jeffery | CNBC
Chevron reported fourth-quarter earnings below Wall Street estimates on Friday as weak margins pushed its refining business into a loss for the first time since 2020.
The second-largest U.S. oil producer posted total earnings of $3.24 billion for the three months ended Dec. 31, up from $2.26 billion in the same period last year.
However, its adjusted earnings per share of $2.06 was below Wall Street’s $2.11 estimate, hit by weak fuel sales in the United States.
Profits on fuel sales tumbled across the industry last year, as the post-pandemic demand surge faded and economic activity faltered in the United States and China, the two largest oil consumers.
Chevron’s downstream business lost $248 million in the fourth quarter of 2024, compared with a profit of $1.15 billion in the same period a year ago.
Margins softened in both the U.S. and international markets, but weak jet fuel demand aggravated troubles for the Houston-headquartered company’s domestic business. U.S. fuel sales fell 3% year-over-year, Chevron said.
While refining struggled, Chevron’s oil production held relatively flat in the fourth quarter at 3.35 million barrels of oil equivalent per day (boepd), compared with 3.39 million bpd a year ago.
