Revenues fell 33.4% to US$74.1 billion (RM282.7 billion).
Contribution from project ramp-ups (in the U.S., Argentina and Bangladesh), the effects of production entitlement in certain regions, and lower downtime associated with turnarounds were partially offset by normal field declines and output loss as a result of Chevron’s policy to shed some of its less-profitable projects.
Production rose 2 percent to 2.6 million barrels of oil equivalent per day (boe/d).
“Our quarterly results reflect the disparate impacts of the current commodity price environment, but also demonstrate the strength of our sound operations, superior project execution capabilities, as well as continued discipline in capital and expense management,” ExxonMobil CEO Rex Tillerson said.
ExxonMobil’s capital expenditures (capex) fell sharply from a year ago, down 16% to $8.26 billion. The worldwide upstream operations recorded losses of $1.18 billion. It reflected in its share price on the NYSE, where it fell around 4.5% in early trade.
Chevron sold off $1.8 billion in assets during the quarter, but its impairment charges came in at $2.6 billion.
It took a $1 billion loss in its U.S. upstream unit because of the write offs, even as its oil and gas output increased in the Permian Basin in West Texas, the Gulf of Mexico and the Marcellus Shale in Pennsylvania.
The company posted net income of $571 million, or 30 cents per share, compared with $5.67 billion, or $2.98 per share, in the year-ago period.
Chevron’s net earnings include $1.96 billion in impairments and $670 million in product suspension-related charges. The upstream unit posted a $2.22 billion loss, versus year-ago earnings of $5.264 billion. Chevron sold 535,000 barrels of its branded gasoline a day in the United States, up 2 percent. The average price per barrel of crude and natural gas liquids in the U.S. fell from $92 last year to $50 this year. Many analysts have predicted prices could fall further still throughout the end of the year.
Top priorities are completing the Gorgon and Wheatstone liquefied natural gas export projects in Australia.
Nevertheless, Chevron’s production outlook remains one of the most robust in its peer group, with a number of major initiatives scheduled to come online during the next few years.
