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Chevron Q2 loss $1.47 billion thanks to low oil prices

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Staff Writer | July 29, 2016
Chevron
Chevron   Operating expenses and capital spending were reduced

Chevron reported a second-quarter loss, compared to profit in the prior year, reflecting lower oil prices and our ongoing adjustment to a lower oil price world.

The latest-quarter results included impairments and other non-cash charges of $2.8 billion.

"The second quarter results reflected lower oil prices and our ongoing adjustment to a lower oil price world," said Chairman and CEO John Watson.

"In our upstream business, we recoded impairment and other charges on certain assets where revenue from expected oil and gas production is expected to be insufficient to recover costs. Our downstream business continued to perform well."

Net loss attributable to the company for second quarter 2016 was $1.47 billion or $0.78 per share, compared with earnings of $571 million or $0.30 per share in the second quarter of 2015.

Included in the latest-quarter were impairments and other non-cash charges totaling $2.8 billion, partially offset by gains on asset sales of $420 million.

Foreign currency effects increased earnings in the 2016 second quarter by $279 million, compared with a decrease of $251 million a year earlier.

"We continue to make progress towards our goal of getting cash balanced," Watson added. "Our operating expenses and capital spending were reduced over $6 billion from the first six months of 2015.

Sales and other operating revenues in second quarter 2016 were $28 billion, compared to $37 billion in the year-ago period.

Total Revenues and Other Income for the quarter dropped to $29.28 billion from $40.36 billion in the prior year


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