Chevron profit down, plans to cut up to 7000 jobs

Chevron on Friday reported third-quarter earnings of $2 billion, compared with $5.6 billion in 2014.

Sales and other operating revenues in third quarter were at $33 billion, compared to $52 billion in the year-ago period, the company said in its quarterly report.

“Third quarter earnings were down substantially from a year ago due to weaker market prices for both crude oil and natural gas,” said Chairman and CEO of Chevron, John Watson.

The company expects capital and exploratory expenditures for 2016 to be $25-28 billion, roughly 25 percent lower than this year’s budget.

“We expect further reductions in spending for 2017 and 2018, to the $20 to $24 billion range, depending on business conditions at the time. With the lower investment, we anticipate reducing our employee workforce by 6–7,000,” Watson said.

Australian LNG projects

Chevron said it has during the quarter continued to progress with its two giant LNG projects currently being built in Western Australia.

The company said it is moving forward with commissioning activities in preparation for startup of Train 1 of its USD 54 billion Gorgon LNG project on Barrow Island.

Gorgon LNG project will likely ship its first cargo of the chilled gas early 2016.

Construction on Chevron’s $US29 billion Wheatstone LNG project is also progressing with seventeen of 24 Train 1 process modules required for first LNG delivered to the site near Onslow, the company added.