U.S Oil Giant, Chevron Corporation (CVX) reported Q4 results with an $11 million loss pushed by acquisition costs, low margins on fuel, and foreign currency effects. The company was, however, quick to respond to the crisis last year as it reduced 15% of its global workforce, cut down new project outlays, and held back on oil production goals.
“Despite a recent rise in oil prices, Chevron will not boost capital spending this year,” Chief Financial Officer Pierre Breber informed. He further added “While we’re optimistic about vaccines and getting on a pathway to recovery, we’re not there right now. We still have an economy that’s operating well below capacity. We still have inventory levels that are high.”
- Chevron reported an adjusted loss of $11 million, or 1 cent per share, in comparison to a profit of $2.8 billion, or $1.49 per share, a year earlier.
- The net loss stood at $665 million including acquisition costs, the effect of foreign exchange, and pension payouts.
- Chevron’s oil and gas earnings stood at $501 million, in comparison to a loss of $6.7 billion a year earlier due to improved oil and gas prices and a 6% increase in output from the Noble purchase.
- Chevron’s international production business sold oil for about $40 per barrel, an increase from $39 in the prior quarter and down from $57 a year earlier.
- The company’s refining and chemical unit reported a fourth-quarter loss of $338 million in comparison to a profit of $672 million the year prior.
- Fuel sales dropped 10.55% from the year-ago period as COVID-19 travel restrictions continued to reduce demand.
- Cash flow from operations was $2.3 billion, short of covering the $2.5 billion dividends and $3.2 billion in capital spending for the period.
- The company plans to spend $14 billion this year on projects and about $15 billion annually through 2025, below its prior forecast of up to $22 billion.
- Chevron reported a full-year loss of $5.54 billion compared with earnings of $2.92 billion in 2019.
Dow 30 component Chevron Corporation (CVX), through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. To learn more about Chevron (CVX) and to track their progress please visit the Vista Partners Chevron Page.
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