Chevron books $665 million loss as revenues sink

U.S. oil major Chevron managed to cut its losses in the fourth quarter of 2020 compared to the same period in 2019 despite a significant decrease in revenues affected by the Covid-19 pandemic.

Chevron Corporation on Friday reported a loss of $665 million for the fourth quarter of 2020, compared with a loss of $6.6 billion in the fourth quarter of 2019.

Included in the current quarter was a charge of $120 million associated with Noble Energy acquisition costs.

To remind, Chevron completed its previously announced acquisition of Noble Energy, following approval by Noble Energy shareholders, in early October 2020.

Chevron noted that the foreign currency effects decreased earnings by $534 million. Adjusted loss of $11 million in fourth-quarter 2020 compares to adjusted earnings of $2.8 billion in fourth-quarter 2019.

The oil company also reported a full-year 2020 loss of $5.5 billion compared with earnings of $2.9 billion in 2019.

Chevron’s revenues in fourth-quarter 2020 were $25.25 billion, compared to $36.35 billion in the year-ago period.

“2020 was a year like no other”, said Mike Wirth, Chevron’s chairman of the board and chief executive officer.

“We were well-positioned when the pandemic and economic crisis hit, and we exited the year with a strong balance sheet, having completed a major acquisition and increased our dividend payout for the 33rd consecutive year”.

For Chevron, worldwide net oil-equivalent production was 3.28 million barrels per day in fourth-quarter 2020, an increase of 6 per cent from a year ago.

The increase was largely due to the Noble Energy acquisition, partially offset by production curtailments.

Worldwide net oil-equivalent production for the full-year 2020 was 3.08 million barrels per day, an increase of 1 per cent from the prior year.

Chevron’s U.S. upstream operations earned $101 million in fourth-quarter 2020, compared with a loss of $7.47 billion a year earlier.

The increase was primarily due to the absence of fourth-quarter 2019 impairments of $8.2 billion, partially offset by lower crude oil realizations.

Capital and exploratory expenditures in 2020 were $13.5 billion, compared with $21 billion in 2019.