Michael Wirth, CEO of Chevron.
Adam Jeffrey | CNBC
Chevron (Chevron) on Friday announced its second consecutive quarterly loss after its third-quarter revenue fell 32% year-on-year, hit by Covid-19.
Chevron said it has taken active cost-cutting measures in the face of falling oil prices.
The oil giant lost $207 million in the quarter. On an adjusted basis, Chevron earned 1
In the second quarter, the oil giant’s adjusted loss per share was $1.59 and revenue was $13.49 billion.
In the third quarter of last year, the company earned $1.36 per share on revenue of $36.12 billion.
Chairman and CEO Michael Wirth said in a statement: “The third quarter performance was down compared to the same period last year. This was mainly due to the decline in commodity prices and the impact of COVID-19. The rate has fallen.” “The world economy continues to operate below pre-pandemic levels, affecting the demand for our products that are closely related to economic activity.”
Chevron said that as energy companies were struggling with low oil prices, their capital expenditures fell by 48% and operating expenditures fell by 12%.
Worth said: “We are still focusing on the things we can control-safe operations, capital discipline and cost management.” On Wednesday, the company announced a quarterly dividend of $1.29 per share.
In the third quarter, net oil equivalent production fell by 7% year-on-year to 2.83 million barrels a day, as the company reduced its business volume due to low commodity prices and declining demand. U.S. upstream business revenue for the quarter was $116 million, a year-on-year decrease of 84%. The average selling price of crude oil and natural gas liquids per barrel in the third quarter was US$31, down from US$47 in the same period last year.
Chevron said its operating cash flow for the first nine months of 2020 reached US$8.3 billion, which was lower than the US$21.7 billion in the same period last year.
Chevron completed the acquisition of Noble Energy in early October. The all-stock transaction announced in July was worth $5 billion. Including debt, the total value reached 13 billion US dollars.
In pre-market trading on Friday, Chevron’s stock fell slightly. The stock has fallen 43% this year.
Correction: Earnings per share for the third quarter of 2019 were $1.36 and revenue was $36.12 billion.