Chevron Craters on Massive Q2 Loss

Chevron (NYSE:CVX) reported an $8.3-billion loss in the second quarter as the coronavirus pandemic "significantly reduced demand." Amid a historic drop in oil prices, the company’s average price per barrel of oil and natural gas liquids dropped more than 60% year-over-year.

The oil giant lost $1.59 per share on an adjusted basis, while revenue came in at $13.49 billion. In the same quarter a year ago the company earned $2.27 per share on $36.32 billion in revenue.

Analysts expected the company to post a loss of 92 cents per share, on $22.097 billion in revenue.

Part of the company’s loss came from a $1.8 billion writedown primarily associated with a downward revision in the company’s commodity price outlook. The company also fully impaired its $2.6 billion investment in Venezuela, and reported $780 million in expenses related to job cuts.

Part of the company’s loss came from a $1.8-billion writedown primarily associated with a downward revision in the company’s commodity price outlook. The company also fully impaired its $2.6-billion investment in Venezuela, and reported $780 million in expenses related to job cuts.

The company said that while demand and prices have started to show signs of recovery, they’re not back to pre-pandemic levels. Given the uncertain outlook, Chevron said that results could be depressed next quarter too.

Shares in Chevron opened Friday, the last session of both the week and the month down $3.44, or 4%, to $82.87.