Chevron Reports Lower-Than-Expected Earnings in Q4 Due to Weak Margins
Chevron Corporation's financial performance for the fourth quarter of 2023 fell short of market expectations, as revealed in its earnings report released on Friday.
The company reported total earnings of $3.24 billion for the period ending December 31, 2023, an increase from the $2.26 billion recorded in the same quarter of 2022. However, on an adjusted basis, earnings per share reached $2.06, below the Wall Street estimate of $2.11, primarily due to sluggish fuel sales in the United States.
Industry-wide, fuel sales have experienced a decline as post-pandemic demand has subsided and economic activity has slowed in key consumer markets like the United States and China. Chevron's downstream business incurred a loss of $248 million in the fourth quarter of 2023, compared to a profit of $1.15 billion in the corresponding period last year. Margins softened in both domestic and international markets, with weak jet fuel demand particularly impacting the company's U.S. operations.
Chevron reported a 3% year-over-year drop in domestic fuel sales. Despite challenges in its refining operations, the company's oil production remained relatively stable in the fourth quarter, averaging 3.35 million barrels of oil equivalent per day (boepd) compared to 3.39 million bpd a year earlier.