Chevron posted total earnings of US$415 million for Q4 2016, however, posted a loss for full-year 2016 that the US supermajor says were due to the low oil prices.
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Image from Chevron. |
Chevron’s Q4 2016 earnings reflected a gain, when compared to Q4 2015’s loss of $588 million. For full-year 2016, the company reported a loss of $497 million, compared 2015’s earnings of $4.6 billion.
The company's Q4 2016 revenue came in at $31.5 billion, compared to 2015’s $29 million. Its full-year 2016 suffered a 17% decline, going from $138 billion in 2015, to $114 billion in 2016.
“Our 2016 earnings reflect the low oil and gas prices we saw during the year,” Chevron Chairman and CEO John Watson says. “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. That confidence enabled us to increase the 2016 annual dividend payout for the 29th consecutive year.”
US upstream operations, including the Gulf of Mexico, earned $121 million in Q4 2016, compared with a loss of $1.95 billion from a year earlier.
Chevron says the increase was primarily due to lower depreciation, exploration and operating expenses, and higher crude oil and natural gas realizations.
Net oil-equivalent production of 682,000 b/d in Q4 2016 was down 37,000 b/d, or 5%, from a year earlier.
Production increases from base business in the Gulf of Mexico, and the company’s onshore assets, were more than offset by the impact of asset sales of 58,000 b/d and normal field declines.
The net liquids component of oil-equivalent production increased 2% in Q4 2016 to 508,000 b/d, while net natural gas production decreased 21% to 1.04 Bcf/d.
Chevron’s capex in 2016 came in at $22.4 billion, compared with $34 billion in 2015, representing a 34% drop. Expenditures for upstream represented 90% of the company-wide total in 2016.
The firm said its focus for 2017 would be finishing projects under construction, such as Gorgon 3 and Wheatstone, which is due online in 2017. Reducing capital spend and focusing on work that's profitable at a lower price, was also to be a focus.
Operating cost was reduced 9% in 2016 and would be further reduced in 2017. Chevron will also be looking to complete asset sales totalling about $5-10 billion.
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