Low oil and gas prices push Chevron to loss in 2016

US-based energy giant Chevron, reported a loss of US$497 million for the year 2016, compared to a profit of $4.6 billion a year before. 

Speaking of the results, John Watson, Chevron’s chairman and CEO, said that the company’s earnings reflect the low oil and gas prices during the year.

“We responded aggressively to those conditions, cutting capital and operating expenses by $14 billion. We are well positioned to improve earnings and be cash flow balanced in 2017 through continued tight spending and cost control and additional revenue from expected production growth,” Watson said.

Capital and exploratory expenditures in 2016 were $22.4 billion, compared with $34.0 billion in 2015.

Chevron’s profit for the fourth quarter reached $415 million compared to a loss of $588 million in the corresponding quarter of 2015.

Foreign currency effects increased earnings in the 2016 quarter by $26 million, compared with an increase of $46 million a year earlier.

Worldwide net oil-equivalent production was 2.67 million barrels per day in fourth quarter 2016, unchanged from the 2015 fourth quarter, the company said adding that the net oil-equivalent production for the full year 2016 was 2.59 million barrels per day, a decrease of 1 percent from the prior year.