Chevron has reported net income of $4.44bn for the fourth quarter (Q4) of 2024, down 26.3% from $6bn in the same quarter of the previous year.
The decline is attributed to lower margins on refined product sales, the absence of favourable tax items from the prior year and negative foreign currency effects.
During April and June 2024, the US oil giant’s revenues saw a slight increase, reaching $51.18bn, up from $48.89bn in the corresponding period of 2023.
For the first half of 2024, the company’s total revenues and other income were $99.89bn, compared with $99.68bn in the first half (H1) of 2023.
Despite the increase in revenue, Chevron’s net income for the first six months of 2024 was $9.99bn, a drop from $12.61bn in H1 2023.
Chevron’s worldwide net oil-equivalent production increased by 11.2% to 3,292,000 barrels per day, mainly due to the acquisition of PDC and strong performance in the Permian and DJ Basins in the US.
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By GlobalDataHowever, this was partly offset by downtime in Australia.
The company’s capital expenditure in Q2 2024 was higher than the previous year, largely due to increased investments in upstream operations, including spending on legacy PDC assets.
In terms of shareholder returns, Chevron returned $6bn of cash to shareholders during the quarter through dividends and share repurchases, each amounting to $3bn.
Chevron’s board of directors also declared a quarterly dividend of $1.63 per share, payable on 10 September 2024.
Additionally, Chevron announced that it is relocating its headquarters from San Ramon, California, to Houston, Texas.
Chevron chairman and CEO Mike Wirth said: “This quarter, we delivered strong production, enhanced our global exploration portfolio and extended our track record of consistent shareholder returns with over $50bn of distributions in the last two years. Despite recent operational downtime and softer margins, we remain poised to deliver significant long-term earnings and cash flow growth.”
