UPDATES WITH HEADQUARTERS RELOCATING, SENIOR LEADERSHIP CHANGES
By Ovunc Kutlu
ISTANBUL (AA) - American energy major Chevron saw its earnings decline 26% in the second quarter of this year, compared to the same period of last year, according to its financial results statement released Friday.
The company posted total earnings of approximately $4.43 billion in April-June period of this year, down 26.3% from $6.01 billion the same period of last year.
"Foreign currency effects decreased earnings by $243 million," said the statement.
The firm's net oil-equivalent production, on the other hand, rose to more than 3.92 million barrels per day, up 32.4% from 2.96 million barrels per day, during that period.
Net oil-equivalent production in the US was up 353,000 barrels per day from a year earlier due to record high production in the oil-rich Permian Basin, according to the statement.
Amid decline in earnings, Chevron shares were down 2.93% at 2.25 p.m. EDT on the New York Stock Exchange.
Chevron announced in a separate statement that it has decided to relocate the company’s headquarters from San Ramon, California, to Houston, Texas.
Chairman and CEO Mike Wirth, and Vice Chairman Mark Nelson will move to Houston before the end of this year to co-locate with other senior leaders and enable better engagement with executives, employees, and business partners, it said.
While the company expects all corporate functions moving to Houston over the next five years, positions in support of the company’s California operations will remain in San Ramon, it added.
Chevron said it currently has roughly 7,000 employees in the Houston area, and approximately 2,000 employees in San Ramon.
The company said it operates crude oil fields, technical facilities, two refineries, and supplies more than 1,800 retail gasoline stations in the state of California.
Chevron, in addition, said Nigel Hearne, executive vice president of Oil, Products & Gas will retire from the company after 35 years of service. Vice Chairman Nelson will take responsibility for Oil, Products & Gas effective Oct. 1.
Rhonda Morris, vice president and chief human resources officer, will also retire after 31 years of service to Chevron. She will be succeeded by Michelle Green, vice president of Human Resources Oil, Products & Gas.
Colin Parfitt, vice president of Midstream, will also retire after 29 years of service.
Chevron said it appointed Andy Walz, currently president of America’s Products, to president of Downstream, Midstream & Chemicals, effective Oct. 1.