
US oil major Chevron has reported fourth-quarter (Q4) earnings below expectations due to weak refining margins, marking the first loss in this segment in four years.
CEO Mike Wirth noted the post-pandemic surge in fuel margins has ended, with a continued downtrend expected this year, reported Reuters.
The company’s adjusted earnings per share of $2.06 fell short of Wall Street’s estimate of $2.11, resulting in shares dropping to more than 4% to $148.68.
The decline in fuel sales profit was industry-wide last year as demand decreased, and economic activity slowed in the US and China.
Chevron’s downstream business reported a loss of $248m in Q4 2024, compared with a $1.15bn profit the previous year. US fuel sales decreased 3% year-over-year.
Refining margins were weakened in both US and international markets, with domestic operations affected by weak market demand for jet fuel.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“It was a quarter in which everything went one way and it was negative,” said Wirth during a post-earnings conference call on the refining business.
Despite challenges in refining, Chevron’s oil and gas exploration and production profit rose to $4.3bn from $1.59bn a year ago, although US business results missed consensus estimates.
Chevron’s Q4 oil production remained stable at 3.35 million barrels of oil equivalent per day (mboe/d), slightly down from 3.39mboe/d a year ago.
Production in the Permian Basin increased 14% year-over-year to 992,000 barrels of oil equivalent per day, nearing the company’s 1mboe/d target.
Wirth expressed confidence that Permian operators will maintain modest capital spending, contrasting with the 2010s shale boom’s growth focus.
“I don’t see anybody that is heading back to what the industry was doing a decade ago – which is throwing all the capital on growth,” he said.
Chevron anticipates global output growth of 6–8% this year and 3–6% in 2026, assuming Brent crude oil prices of around $70 per barrel (bbl), with Brent currently trading at approximately $77/bbl.
The company increased its quarterly dividend by 5% to $1.71 per share, and expects to gain $10bn in free cash flow over the next two years.
Chevron also announced its commitment to repurchase $10bn–20bn of shares annually, depending on market conditions.