Chevron Reports Wider-Than-Expected Loss
April 29 2016 - 9:29AM
Dow Jones News
By Anne Steele
Chevron Corp. on Friday reported a wider-than-expected loss amid
lower oil prices and the stronger dollar.
Shares in the second-largest energy company in the U.S. by
revenue fell 1.5% to $100.91 in premarket trading.
Chief Executive John Watson said the company's upstream business
was impacted by a more than 35% decline in crude-oil prices.
The company's average sales price per barrel of crude oil and
natural gas liquids was $26 in the first quarter, down from $43 a
year earlier.
"Our downstream operations continued to perform well, although
overall industry conditions and margins this quarter were weaker
than a year ago, " said Mr. Watson.
Chevron said late last year that it would cut up to 10% of its
workforce and slash its capital spending budget by 25% this year.
Like many of its peers, the San Ramon, Calif.-based oil company has
looked to cut costs as sharply lower energy prices whack
profitability.
Chevron's upstream operations, which include exploration and
drilling, were hit worst by the plunge in energy prices. In the
U.S., the segment lost $1.46 billion after earning $1.56 billion a
year earlier. In its downstream operations -- refining -- Chevron
saw its profit nearly halve to $735 million.
Overall, Chevron reported a loss of $725 million, or 39 cents a
share, down from a profit of $2.57 billion, or $1.37 a share, a
year earlier.
Revenue tumbled 31% to $23.55 billion. Analysts projected a loss
of 20 cents on $21.43 billion in revenue, according to Thomson
Reuters.
Also Friday, rival Exxon Mobil Corp., the largest U.S. oil
company, said its first-quarter profit plunged 63% as oil prices
remain depressed, but the decline was smaller than analysts had
predicted.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
April 29, 2016 09:14 ET (13:14 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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