Chevron suffers $5.5bn loss in one year, despite sack of staff, others
Indication has emerged that the US oil giant, Chevron, despite sack of staff and slash in capital spending to ride out the downturn, still ended the year with a loss of $5.5 billion compared with earnings of $2.9 billion in 2019.
Chevron reported a fourth-quarter loss on Friday to conclude a wobbly year for oil companies as the coronavirus battered demand for petroleum products.
It was gathered that Chevron lost $665 million in the quarter ending December 31, compared with a loss of $6.6 billion in the previous year following a large asset write-down.
It was learnt that US oil prices fell in April 2020, when futures briefly went into negative territory amid a supply glut prompted by the sudden shutdown of much of the US economy.
Crude prices rose and stabilized later in the year, but demand remains weak for some products such as jet fuel.
“2020 was a year like no other,” said Chevron Chief Executive, Mike Wirth.
“When market conditions deteriorated, we swiftly reduced capital spending by 35 per cent from 2019 and also reduced operating costs, demonstrating our commitment to capital and cost discipline.”
Revenues in the fourth quarter fell 30.5 per cent to $25.2 billion. For all of 2020, revenues fell 35.4 per cent to $94.7 billion. Shares fell 1.5 per cent to $87.68 in pre-market trading.
