Chevron posts $588 million loss for 4Q 2015

Oil giant from San Ramon, California, Chevron, today posted a loss of $588 million for the fourth quarter 2015, versus $3.5 billion earnings in the 2014 fourth quarter, hit by a steep decline in crude oil prices. According to Reuters, this is Chevron’s first lost in more than thirteen years.

Full-year 2015 earnings were $4.6 billion compared with $19.2 billion in 2014. Sales and other operating revenues in fourth quarter 2015 were $28 billion, compared to $42 billion in the year-ago period.

“Our 2015 earnings were down significantly from the previous year, reflecting a nearly 50 percent year-on-year decline in crude oil prices,” said Chairman and CEO John Watson.

Worldwide net oil-equivalent production was 2.67 million barrels per day in fourth quarter 2015, up from 2.58 million barrels per day in the 2014 fourth quarter.

Chevron’s average sales price per barrel of crude oil and natural gas liquids was $35 in fourth quarter 2015 in U.S., down from $66 a year ago.

The company’s international upstream operations earned $593 million in fourth quarter 2015 compared with $2.24 billion a year earlier, however U.S. upstream operations incurred a loss of $1.95 billion. U.S. upstream operations incurred a loss of $1.95 billion.

More capex cuts

Capital and exploratory expenditures in 2015 were $34.0 billion, compared with $40.3 billion in 2014.

Capex for 2016, is expected to be reduced further, compared to 2015, and also, Chevron is planning to sell more assets in 2016 and 2017.

Watson said: “We’re taking significant action to improve earnings and cash flow in this low price environment. Operating expenses and capital spending were reduced $9 billion in 2015 from 2014, and I expect similarly large reductions again in 2016. In addition, asset sales proceeds were $6 billion in 2015, with additional sales planned for 2016 and 2017.”

Gorgon in a few weeks

Speaking on the projects Chevron accomplished in 4Q Watson mentioned first production from two deepwater projects in Africa, and ramped up production from Jack/St. Malo in the deepwater Gulf of Mexico. He also revealed the planned date for the start of production from the giant Gorgon gas field offshore Australia.

Watson said: “We made significant progress on our LNG projects in Australia, in particular the Gorgon Project where we expect to be producing LNG within the next few weeks.”

Offshore Energy Today Staff

 

Share this article

Follow Offshore Energy Today

Events>

<< Mar 2017 >>
MTWTFSS
27 28 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Future Conference: Wind & Maritime

The sixth Future Conference: Wind & Maritime – the conference in north-eastern Germany that connects wind wnergy with maritime industry…

read more >

Ocean Business 2017

Ocean Business 2015 was phenomenally successful, with visitor numbers up an incredible 29%. The overall attendance was a staggering 4,589…

read more >

23rd Annual BBSPA Conference

The Conference has established itself as a platform that brings together high-level professionals from regional and international oil…

read more >

06th OIL & GAS KENYA 2017

The 06th Oil & Gas Africa – Int’l Trade Exhibition, 11 – 13 April, 2017, is a hub for key players in the oil and gas community…

read more >

Jobs>

Electrician

For one of our clients we are looking for a Ships Electrician. Our client is a company with worldwide activities. You will work in a rotation of 4 till 6 weeks on and off.

apply

QC Coordinator Offshore

Do you attach great importance to quality and do you have an affinity with offshore projects? Then read about what Van Oord can offer you.

apply

Assistant Driller

Maersk Drilling Norge AS was established in 1990 and employs a staff of approximately 1000 people.

apply