Chevron said its adjusted loss for the three months ending in June was pegged at $1.59 per share, well ahead of the 92 cents per share Street consensus forecast. Group revenues, Chevron said, fell 55.5% to $16 billion, again missing analysts' estimates of a $22.1 billion tally.
“The past few months have presented unique challenges,” said CEO Michael Wirth. “The economic impact of the response to COVID-19 significantly reduced demand for our products and lowered commodity prices."
"Given the uncertainties associated with economic recovery, and ample oil and gas supplies, we made a downward revision to our commodity price outlook which resulted in asset impairments and other charges,” he added. "While demand and commodity prices have shown signs of recovery, they are not back to pre-pandemic levels, and financial results may continue to be depressed into the third quarter 2020."
Chevron shares were marked 3.6% lower in early trading following the earnings release to change hands at $83.15 each, a move that would extend the stock's year-to-date decline to around 31%.
West Texas Intermediate crude prices averaged $40.84 per barrel over the three months ending in June, down 29% from the same period last year.
Prices were also hit by the biggest single-day decline on record, which took crude prices to -$37.63 per barrel in mid-April, as a lack of physical storage space wreaked havoc on global crude markets just as futures contracts for the month were set to expire.