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