Chevron Reports Second-Quarter Loss of $1.5 Billion

chevronSan Ramon-based Chevron Corporation (NYSE: CVX) reported a loss of $1.5 billion, or 78 cents per share, for the second quarter of fiscal 2016, compared with earnings of $571 million, or 30 cents per share, for the same period in 2015.

The company also declared a quarterly dividend of $1.07 per share, payable Sept. 12, to holders of record as of Aug. 19.

Sales and other operating revenues in the second quarter 2016 were $28 billion, down 24% from $37 billion in the year-ago period.

Included in the latest quarter’s results were impairments and other non-cash charges totaling $2.8 billion, partially offset by gains on asset sales of $420 million.

“The second quarter results reflected lower oil prices and our ongoing adjustment to a lower oil price world,” said Chairman and CEO John Watson.

“In our upstream business, we recorded impairment and other charges on certain assets where revenue from expected oil and gas production is expected to be insufficient to recover costs. Our downstream business continued to perform well,” he added.

“We continue to make progress towards our goal of getting cash balanced,” Watson said. “Our operating expenses and capital spending were reduced over $6 billion from the first six months of 2015,” and the company is completing several major capital projects.

“We have restarted LNG production and cargo shipments at Gorgon and Angola LNG, and started up the third train at the Chuandongbei Project in China. Construction at our other key projects is progressing, and we expect additional start-ups later this year. As these projects continue to ramp up, they are expected to increase net cash generation in future quarters,” Watson said.

Foreign currency effects increased earnings in the 2016 second quarter by $279 million, compared with a decrease of $251 million a year earlier.

Comments are closed.