Michael Wirth, CEO of Chevron.
Adam Jeffery | CNBC
Chevron On Friday, the second straight quarter was reported in losses after third-quarter sales fell 32% year over year, hammered by Covid-19.
Amid falling oil prices, Chevron announced aggressive cost-cutting measures.
The oil giant lost $ 207 million in the quarter. Adjusted, Chevron earned 11 cents per share, far better than the analyst loss of 27 cents per share surveyed by Refinitiv. Chevron’s sales were $ 24.45 billion, missing the consensus estimate of $ 25.8 billion.
In the second quarter, the oil giant lost $ 1.59 per share on an adjusted basis, while revenue was $ 13.49 billion.
For the third quarter last year, the company had revenues of $ 1.36 per share on revenues of $ 36.12 billion.
“Third quarter results were lower than a year ago, mainly due to lower commodity prices and margins due to the impact of COVID-19,” said Michael Wirth, chairman and CEO, in a statement. “The global economy continues to move below pre-pandemic levels and is affecting demand for our products, which are closely related to economic activity.”
As energy companies struggled with low oil prices, Chevron’s investments fell 48% and operating costs fell 12%.
“We continue to focus on what we can control – secure processes, capital discipline and cost management,” said Wirth. On Wednesday the company announced a quarterly dividend of $ 1.29 per share.
During the third quarter, net oil equivalent production declined 7% year over year to 2.83 million barrels per day as the company shut down due to low commodity prices and lower demand. U.S. upstream operations earned $ 116 million for the quarter, down 84% year over year. The average selling price per barrel of crude oil and natural gas liquids was $ 31 for the third quarter, compared to $ 47 a year earlier.
According to Chevron, cash flow from operating activities for the first nine months of 2020 was $ 8.3 billion, compared with $ 21.7 billion the previous year.
In early October, Chevron completed the acquisition of Noble Energy. The all-stock deal that was announced in Julywas valued at $ 5 billion. Including the debt, it was worth $ 13 billion.
Chevron’s shares were up 1% on Friday. The stock has lost 42% this year.