Chevron (NYSE:CVX) on Friday reported its second straight quarter of losses after revenue during the third quarter fell 32% year over year, hammered by Covid-19.
Amid declining oil prices Chevron said it implemented aggressive cost-cutting measures.
The oil giant lost $207 million during the quarter. On an adjusted basis, Chevron earned 11 cents per share, far better than the 27-cent-per-share loss expected by analysts. Chevron’s revenue came in at $24.45 billion, which missed the consensus estimate of $25.8 billion.
During the second quarter, the oil giant lost $1.59 per share on an adjusted basis, while revenue came in at $13.49 billion.
In the third quarter a year earlier, the company earned $1.36 per share on $36.12 billion in revenue.
Said CEO Michael Wirth, “Third-quarter results were down from a year ago, primarily due to lower commodity prices and margins resulting from the impact of COVID-19.
"The world’s economy continues to operate below pre-pandemic levels, impacting demand for our products which are closely linked to economic activity."
As energy companies struggle amid depressed oil prices, Chevron said its capital spending declined 48% and its operating expenses were down 12%.
During the third quarter, net oil-equivalent production declined 7% year over year to 2.83 million barrels per day as the company scaled back its operations in response to low commodity prices and lower demand. U.S. upstream operations earned $116 million during the quarter, an 84% year-over-year decline
Shares in Chevron gave up a dime to $68.70.
