NEW YORK (TheStreet) -- Chevron Corp. (CVX) - Get Report shares are down 4.3% to $89.03 on heavy volume in early market trading on Friday following the release of the global oil company's second quarter results today.
The San Ramon, CA-based company reported a 90% decline in profit as it earned $571 million in the period, its lowest profit in 13 years.
The company earned 97 cents per diluted share on revenue of $40.36 billion.
During the same period last year, the company reported earnings $2.98 per share on revenue of $57.97 billion.
Analysts on average were expecting the company to report earnings of $1.16 per share on revenue of $30.91 billion.
While production in the quarter rose 2% to 2.6 million barrels of oil equivalent per day, slumping oil prices which averaged about $62 per barrel in the quarter after averaging $110 per barrel a year ago, took their toll on the entire sector.
Earlier this week the company announced that it will cut 1,500 jobs as it looks to reduce costs by about $1 billion.
"In light of the current market environment, Chevron is taking action to reduce internal costs in multiple operating units and the corporate center. These initiatives, which are currently underway, are focused on increasing efficiency, reducing costs and focusing on work that directly supports business priorities," the company said in a statement.
TheStreet Ratings team rates CHEVRON CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHEVRON CORP (CVX) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."