Chevron said its adjusted loss for the three months ending in September was pegged at 11 cents per share, 15 cents inside the Street consensus forecast but a big swing from last year's profit of $1.55 per share. Group revenues fell 33.55% from last year to $24.45 billion, Chevron said, a figure that missed analysts' forecasts of a $25.9 billion tally.
West Texas Intermediate crude prices traded in a range of between $38.70 and $39.70 per barrel over the three months ending in September, a sharp 30% decline from the trading range over the third quarter of last year.
“Third quarter results were down from a year ago, primarily due to lower commodity prices and margins resulting from the impact of COVID-19,” said CEO Michael Wirth. “The world’s economy continues to operate below pre-pandemic levels, impacting demand for our products which are closely linked to economic activity.”
“Compared to last year’s third quarter, organic capital expenditures and operating expenses were down 48% and 12%, respectively,.” he added. "Our actions are guided by our long-standing financial priorities: to protect the dividend, invest for long term value and maintain a strong balance sheet."
Chevron shares were marked 0.5% higher in early trading immediately following the earnings release at $69.13 each, a move that trims the stock's six-month decline to around 25%.
Chevron said its group capital and exploratory expenses over the first nine months of the year totaled $10.3 billion, a 33% decline from the same period last year. Capital spending over the third quarter was down 48%, Chevron said.
Chevron also said earlier this week that it's cutting around 25% of the workforce at Noble Energy, which it acquired in a $4.1 billion takeover earlier this month, adding to its aim of reducing it global workforce by as much as 15%.
.U.S. rival ExxonMobil Corp. (XOM) - Get Report said Thursday that it plans to cut some 1,900 jobs at home, while reducing its global headcount by around 15% over the next two years, noting the impact of COVID-19, which has slashed energy demand in key economies around the world, has increased the need for urgent changes in the company's efficiency.