Baku, January 30, AZERTAC
Chevron Corp. lost money for the first time since 2002 as a collapse in prices for the global oil explorer’s main product forced it to write down the value of its assets, according to Bloomberg.
The fourth-quarter net loss was $588 million, or 31 cents a share, compared with profit of $3.5 billion, or $1.85, a year earlier, the San Ramon, California-based company said in a statement on Friday. The per-share result compares to the 47-cent average profit estimate of 23 analysts in a Bloomberg survey.
Chevron’s results were hurt by $1.1 billion in charges, including writedowns on the value of its oil and natural gas fields, according to the statement. The company discovered enough new crude and gas to replace 107 percent of what it produced during 2015.
Shares were down 1.8 percent to $84.37 as of 8:51 a.m. in New York, in trading before regular market hours.
“We’re taking significant action to improve earnings and cash flow in this low price environment,” Chief Executive Officer John Watson said in the statement.
Chevron’s U.S. oil and gas business posted a $1.95 billion loss for the period as falling crude prices that lessened the future value of its fields added to rising exploration expenses.