U.S. oil major Chevron returned to profit during the last quarter of 2016 compared to a loss in the prior-year quarter.
The company on Friday reported earnings of $415 million for the fourth quarter 2016, compared with a loss of $588 million in the 2015 fourth quarter. Foreign currency effects increased earnings in the 2016 quarter by $26 million, compared with an increase of $46 million a year earlier.
However, Chevron’s full-year 2016 results are a different story as the company posted a loss of $497 million, compared with earnings of $4.6 billion in 2015.
Sales and other operating revenues increased in the fourth quarter 2016 totaling $30 billion, compared to $28 billion in the year-ago period.
“Our 2016 earnings reflect the low oil and gas prices we saw during the year,” said Chairman and CEO John Watson.
“We responded aggressively to those conditions, cutting capital and operating expenses by $14 billion. We are well positioned to improve earnings and be cash flow balanced in 2017 through continued tight spending and cost control and additional revenue from expected production growth. That confidence enabled us to increase the 2016 annual dividend payout for the 29th consecutive year.”
Watson commented that the company added approximately 900 million barrels of net oil equivalent proved reserves in 2016, which equate to approximately 95 percent of net oil-equivalent production for the year. The largest additions were from the Future Growth Project at Tengizchevroil, the Permian Basin in the United States and the Wheatstone Project in Australia.
Chevron’s worldwide net oil-equivalent production was 2.67 million barrels per day in fourth quarter 2016, essentially unchanged from the 2015 fourth quarter.
The company explained that production increases from major capital projects and base business were offset by normal field declines, the impact of asset sales, production entitlement effects in several locations and the effects of civil unrest in Nigeria.
Capital and exploratory expenditures in 2016 were $22.4 billion, compared with $34 billion in 2015.
Offshore Energy Today Staff