Chevron reduces its profit by 81% in 2019, to 2.845 million dollars



US oil company Chevron earned $ 2,845 million in 2019, a 81% reduction in its profit over the previous year, which is explained, in part, by amortizations of previously announced projects that left losses in the fourth quarter.

The second largest US oil company, based in San Ramón (California), reported Friday that its revenues between January and December amounted to 146,516 million, 9% less year-on-year, affected by the fall in oil prices .

Regarding the fourth quarter of the year, in which Wall Street was most fixed today, Chevron recorded losses of 6,667 million dollars, reversing its results of that same tranche of 2018, in which it gained 3,723 million.

That figure is due to “deterioration in exploration and production activities (upstream”) and amortizations amounting to 10,400 million “related to its shale gas projects in the Appalachia region and deep-water projects in the Gulf of Mexico, said the firm.

The turnover between October and December, on the other hand, yielded 14% and stood at 36,350 million, below the expectations of the analysts, although it did exceed the estimates of earnings per adjusted share, which was $ 1.49.

Chevron reported that its oil-equivalent production in the fourth quarter was 3.08 million barrels per day, along the same stretch of the previous year, while the annual figure stood at 3.06 million, exceeding for the first time the three millions.

The president and CEO of the oil company, Michael Wirth, noted that milestone in the note and assured that the cash flow from operations remained strong during 2019.

“We paid 9,000 million in dividends, repurchased 4,000 million shares, financed our capital program and captured several inorganic investment opportunities, while reducing debt by more than 7,000 million,” he said.

The results were not well received by investors on an already negative day on Wall Street, and half an hour after the opening of the session their shares fell by a strong 3.43% in the Dow Jones group. Last year, Chevron lost around 9% of its value.

.



Source link