Chevron revenue falls more than 30% in the third quarter as Covid-19 slams demand

Michael Wirth, CEO of Chevron.

Adam Jeffery | CNBC

Chevron reported its second straight quarter of losses on Friday after revenue throughout the third quarter fell 32% yr over yr as Covid-19 continues to hammer the business. Amid declining oil costs Chevron mentioned it applied aggressive cost-cutting measures.

The oil large misplaced $207 million throughout the quarter. On an adjusted foundation Chevron earned 11 cents per share, which was forward of the 27-cent per share loss that analysts polled by Refinitiv had been anticipating. Chevron’s revenue got here in at $24.45 billion, which missed the consensus estimate of $25.Eight billion.

During the second quarter the oil large misplaced $1.59 per share on an adjusted foundation, whereas revenue got here in at $13.49 billion. In the identical quarter a yr in the past, the firm earned $1.36 per share on $36.12 billion in revenue.

“Third quarter results were down from a year ago, primarily due to lower commodity prices and margins resulting from the impact of COVID-19,” mentioned Michael Wirth, the firm’s chairman and CEO, in an announcement. “The world’s economy continues to operate below pre-pandemic levels, impacting demand for our products which are closely linked to economic activity.”

As vitality firms wrestle amid depressed oil costs, Chevron mentioned its capital spending declined 48%, whereas its working bills had been down 12%.

“We remain focused on what we can control – safe operations, capital discipline and cost management,” Wirth added. On Wednesday the firm declared a quarterly dividend of $1.29 per share.

During the third quarter internet oil-equivalent manufacturing declined 7% yr over yr to 2.83 million barrels per day as the firm scaled again its operations in response to low commodity costs, amongst different issues. U.S. upstream operations earned $116 million throughout the quarter, an 84% year-over-year decline. The common sale value per barrel of crude oil and pure fuel liquids was $31 throughout the third quarter, down from $47 in the identical interval a yr earlier.

Chevron mentioned its money move from operations in the first 9 months of 2020 reached $8.three billion, down from $21.7 billion throughout the identical interval a yr earlier.

Earlier in October Chevron accomplished its acquisition of Noble Energy. The all-stock deal, which was first introduced in July, was valued at $5 billion. Including debt, the worth reached $13 billion.

Shares of Chevron had been barely decrease throughout premarket buying and selling on Friday. The inventory has misplaced 43% this yr.

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