After more than 140 years based in California, Chevron announced Friday that it will move its corporate headquarters to Texas, a move welcomed by the southern state’s oil-loving politicians.
The oil company, formerly known as Standard Oil of California, will move its corporate headquarters from San Ramon in Northern California to Houston, long a global oil hub and closer to major U.S. oil fields and petrochemical facilities. The move will take place within the next five years.
Profits are declining
US oil and gas giant Chevron on Friday reported a 26 percent drop in second-quarter net profit, mainly due to a reduction in margins in the refining sector.
Between April and June, the group recorded a net profit of $4.4 billion, compared with $6 billion the previous year.
On a per-share basis, excluding exceptional items, the benchmark for markets, profit fell 17.2 percent over the year to $2.55, below the average analysts had expected.
Revenue rose 4.7 percent to $51.18 billion, above expectations.
“Despite recent operational closures and declining margins, we remain poised to generate significant earnings and cash flow growth over the long term,” Chevron CEO Mike Wirth was quoted as saying in the press release on Friday, August 2.
The group’s production increased by 11 percent in the period, thanks in particular to the integration of PDC Energy, a US company acquired in 2023.
Chevron also highlighted the productivity of its sites in the Permian Basin, particularly rich in hydrocarbons, between western Texas and southeastern New Mexico, and in the Denver-Julesburg Basin (from Colorado to Kansas).
The group’s oil and natural gas exploration and production business in the United States posted a net profit of $2.2 billion in the second quarter, up 32 percent year-on-year, thanks to higher sales volumes.
In the rest of the world, profits linked to this activity fell by 30 percent, to $2.3 billion.
The company’s refining and distribution activities declined significantly. In the United States, it generated a profit of 280 million dollars, a drop of 74 percent.
The same trend was seen internationally, with profits falling 26 percent to $317 million.
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– 2024-08-09 22:58:53
