Chevron fourth-quarter profits miss expectations amid weak jet fuel demand

Investing.com - Chevron (NYSE:CVX) posted lower-than-anticipated fourth-quarter income as tepid U.S. fuel demand dented margins and led its downstream unit to slip to a loss.

For the three months ended on December 31, Houston-based Chevron reported adjusted profit per share of $2.06, below Wall Street forecasts of $2.11.

Total profit increased to $3.24 billion from $2.26 billion in the year-ago period. Chevron noted that severance charges of $715 million and an impairment cost of $400 million were included in the quarter, while foreign currency effects rose by $722 million.

The company flagged that its refining unit lost $248 million in the fourth quarter, slumping from a profit of $1.15 billion in the corresponding period last year. U.S. fuel sales dropped by 3%, dented by sluggish demand for jet fuel.

Oil production came in at 3.35 million barrels of oil equivalent per day, versus 3.39 million in the fourth quarter of 2023.

Chevron also announced a 5% uptick in its quarterly dividend to $1.71 per share, an uptick from its prior payout of $1.63. Analysts had anticipated a dividend of $1.72, according to Bloomberg consensus forecasts.

Shares in Chevron were lower in premarket U.S. trading on Friday following the announcement.

The results come after Chevron recently closed sales of assets in the Republic of Congo, Canada and Alaska and targeted structural expense reductions of between $2 billion to $3 billion by the end of 2026.

The firm added that it has "progressed" its $53 billion acquisition of oil rival Hess Corporation (NYSE:HES). Earlier this month, the U.S. Federal Trade Commission said it had approved a consent order to resolve lingering competition concerns surrounding the takeover, however the deal must still clear a challenge from Exxon Mobil (NYSE:XOM). A three-judge arbitration panel is due to look at the matter in May.