Chevron annual profit fall despite strong fourth-quarter results

(Alliance News) - Chevron Corp on Friday reported a decline in full-year earnings for 2024, despite delivering higher profits in the fourth quarter, as lower refining margins and severance costs weighed on annual results.

The Houston, Texas-based oil & gas company said net income for 2024 fell to USD17.75 billion from USD21.41 billion the prior year. Diluted earnings per share dropped to USD9.72 from USD11.36.

Revenue for the year, however, edged up slightly to USD202.79 billion from USD200.95 billion.

In the fourth quarter alone, net income rose to USD3.26 billion, up 46% from USD2.24 billion a year earlier. Diluted EPS for the quarter increased 51% to USD1.84 from USD1.22, while revenue climbed 11% to USD52.23 billion from USD47.18 billion.

Chevron said its global oil and gas production reached record levels, increasing 7% worldwide and 19% in the US. The company also returned a record USD27 billion to shareholders in 2024 through buybacks and dividends.

"In 2024, we delivered record production, returned record cash to shareholders, and started up key growth projects,” said Chief Executive Officer Mike Wirth.

Despite record production levels, Chevron's downstream earnings—covering refining and fuel sales—fell sharply in 2024 due to lower margins on refined products, higher operating expenses, and impairments. The US downstream segment posted a profit of USD531 million, down from USD3.90 billion in 2023, while international downstream earnings fell to USD1.20 billion from USD2.23 billion the prior year.

Chevron also cited USD715 million in severance costs and USD400 million in asset impairments as weighing on results.

Looking ahead, the company is targeting USD2 billion to USD3 billion in structural cost reductions by 2026 and said is progressing its USD53 billion acquisition of Hess Corp, which was approved by Hess shareholders and cleared Federal Trade Commission review.

The board raised Chevron's quarterly dividend by 5% to USD1.71 per share.

Shares in Chevron were down 1.8% at USD153.50 in pre-market trading in New York on Friday.

By Eva Castanedo, Alliance News reporter

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