Chevron posts $1.5 billion loss in Q2

U.S.-based energy giant and LNG player Chevron posted on Friday a loss of $1.5 billion for second quarter this year, compared with earnings of $571 million in the same period a year before.

The second-quarter results included impairments and other non-cash charges totaling $2.8 billion.

Chevron said in its statement that sales and other operating revenues in second quarter 2016 were $28 billion, compared to $37 billion in the year-ago period.

“The second quarter results reflected lower oil prices and our ongoing adjustment to a lower oil price world,” said Chairman and CEO John Watson.

“In our upstream business, we recorded impairment and other charges on certain assets where revenue from expected oil and gas production is expected to be insufficient to recover costs. Our downstream business continued to perform well.”

Chevron’s capital and exploratory expenditures in the first six months of this year were $12 billion, compared with $17.3 billion in the corresponding 2015 period.

According to Watson, Chevron’s operating expenses and capital spending were reduced over $6 billion from the first six months of 2015.

“In addition, we’re bringing our major capital projects to completion,” Watson said, adding that the company has “restarted LNG production and cargo shipments at Gorgon and Angola LNG, and started up the third train at the Chuandongbei Project in China.”

LNG World News Staff