Chevron closed the third financial quarter with a net loss of £159 million.
The energy giant reported third quarter revenues of £18.85 billion.
The American multinational plans to cut 25% of jobs in Noble Energy.
Chevron Corp. (NYSE: CVX) released its earnings report on Friday, showing that the company closed the third quarter with a net loss of £159.57 million, or 9.25 pence per share. For the same quarter last year, the oil major reported a net profit of £2.0 billion or £1.05 per share.
Chevron is currently trading at £52.77 per share, more than 40% lower than the previous year’s net profit. The company’s shares had plummeted to an even lower value of £41.80 per share in March. Learn more about the capital markets.
Chevron reports third quarter revenues of £18.85 billion
The Company attributed its weak quarterly results to the ongoing coronavirus pandemic, which has been weighing on global oil prices and demand across the board in recent months. COVID-19 has so far infected more than 9 million people in the United States and caused over 234 thousand deaths. Chevron had reported a loss of £6.32 billion in the previous quarter (Q2).
On an adjusted basis, the U.S. multinational earned 8.48 pence per share in the third quarter, while the FactSet forecast a loss per share of 20.04 pence. In terms of revenue, Chevron printed £18.85 billion in the third quarter of the financial year. This compares to revenues of £27.84 billion in the same quarter last year, a much higher figure than in the same period last year. The FactSet consensus for last quarter revenue was £19.92 billion.
CEO Michael K. Wirth commented on the financial report on Friday and said
“Third quarter results were down year over year, primarily due to lower raw material prices and margins resulting from the impact of COVID-19. The global economy continues to operate below pre-pandemic levels, which affects demand for our products, which is closely linked to economic activity”.
U.S. upstream revenues decreased to £89.42 million in the third quarter.
Chevron said on Friday that U.S. upstream profits in the third quarter fell to £89.42 million compared to £560.43 million in the same period last year. The energy giant reported that its average selling price of crude oil per barrel in the third quarter was £23.90, down from £36.23 a year ago.
Downstream revenues from the U.S. downstream business were £108.69 million in the final quarter compared to £299.87 million in the third quarter of last year. Earlier this week Chevron said it plans to cut 25% of jobs in Noble Energy.
Chevron’s performance was slightly positive last year with an annual profit of around 10% on the stock market. At the time of writing this article, the American multinational energy company is estimated at £102 billion.