Chevron posts largest quarterly loss since 2001 on weak oil prices

Fri Jul 29, 2016 10:51am EDT
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HOUSTON (Reuters) - Chevron Corp, the second largest U.S.-based oil producer, posted a second-quarter loss on Friday, its largest since 2001, due to the slump in crude prices and refining income.

While the adjusted results beat Wall Street expectations, they highlighted the deep uncertainty facing the energy industry at a time when depressed commodity prices have eroded profitability.

Chevron, as one of the oil industry's leaders, is normally seen as a bellwether of sorts, and the large loss could portend ongoing deep pain.

The company lost $1.47 billion, or 78 cents per share, in the quarter, compared with a net profit of $571 million, or 30 cents per share, in the year-ago period.

Excluding one-time items, Chevron earned 35 cents per share.

By that measure, analysts expected a profit of 32 cents per share, according to Thomson Reuters I/B/E/S.

Still, shares of Chevron fell 1.8 percent to $99.98 in premarket trading.

John Watson, Chevron's chief executive officer, said the results reflected the company's "ongoing adjustment to a lower oil price world," but said he remained committed to becoming cash flow neutral, or at least generate as much cash as it spends.

Production fell about 3 percent to 2.53 million barrels of oil equivalent per day (boe/d).   Continued...

The logo of Chevron (CVX) is seen in Los Angeles, California, United States, April 12, 2016. REUTERS/Lucy Nicholson/File Photo