Oil and gas giant Chevron said its second-quarter profit was at $571 million, down 90 percent as compared to 2014.
Sales and other operating revenues in second quarter 2015 were $37 billion, compared to $56 billion in the year-ago period.
“ Second quarter financial results were weak, reflecting a crude price decline of nearly 50 percent from a year ago. Our Upstream businesses were particularly hard hit, as lower prices reduced revenues and triggered impairments and other charges, ” said Chevron’s Chairman and CEO John Watson .
“ Multiple efforts to improve future earnings and cash flows are underway ,” Watson continued. “ We’re getting our cost structure down, through renegotiations across the supply chain and by sizing our contractor and employee workforce to reflect lower activity levels going forward. We’re actively managing to a smaller capital program, as projects currently under construction come online and as potential new projects are paced and re-bid. In addition, our 4-year divestment program is ahead of pace .”
According to Watson, project execution on the company’s giant Gorgon and Wheatstone LNG projects in Australia is a priority for Chevron.
“ Incremental production and cash generation from these projects and others, along with a curtailed capital program, should provide support for continuing competitive shareholder distributions, ” he concluded.
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