Another set of quarterly results from an oil major, and another big earnings miss. Chevron is the latest to reveal its damage from another quarter of low oil prices and weak refining margins.
The US group reported a loss of $ 1.5bn, or 78 cents per share, in the three months to June 30, compared with earnings of $ 571m, or 30 cents per share in the same period last year. Analysts had, on average, expected a profit of 32 cents per share, reports Andrew Ward in London.
The results were skewed by an impairment charge of $ 2.8bn “on certain assets where revenue from expected oil and gas production is expected to be insufficient to recover costs”.
Sales and other operating revenues in the quarter were $ 28bn, compared with $ 37bn a year ago, while production was 2.53m barrels of oil equivalent per day, compared with 2.6m barrels last year.
Chairman and CEO John Watson said: “The second quarter results reflected lower oil prices and our ongoing adjustment to a lower oil price world…Our operating expenses and capital spending were reduced over $ 6 billion from the first six months of 2015.”