Worldwide upstream operations incurred a loss of $1.35 billion in second quarter 2016 compared with a loss of $1.18 billion a year ago.
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“The second quarter results reflected lower oil prices and our ongoing adjustment to a lower oil price world”, said Chevron CEO John Watson in a statement.
The company’s average sales price per barrel of crude oil and natural gas liquids was $36 in second quarter 2016, down from $50 a year ago.
The company lost $1.47 billion, or 78 cents per share, compared with a net profit of $571 million, or 30 cents per share, in the year-ago period.
Included in the quarter were other non-cash charges totaling 42.8 billion and gains on asset sales of $420 million.
Additionally, foreign currency effects increased Chevron earnings in the second quarter by $279 million, compared with a decrease of $251 million in 2015. Over the last three months and over the last six months, the shares of Chevron Corporation (CVX), have changed 10.23% and 95.89%, respectively. Chevron Corp.’s revenue for the quarter was down 27.4% on a year-over-year basis. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses. Chevron pumped the equivalent of 2.528 million barrels of oil daily during the quarter, underperforming the 2.618-million barrel average estimate from analysts.
Besides low oil prices, a one-time impairment of certain money-losing operations at Chevron fueled the red ink for the second quarter. The Companys Downstream operations primarily consist of refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products by pipeline marine vessel motor equipment and rail vehicle and manufacturing and marketing commodity petrochemicals plastics for industrial uses and fuel and lubricant additives.
Losses in the company’s US and worldwide upstream operations widened from the year-earlier period. The firm earned $23.53 billion during the quarter, compared to analysts’ expectations of $21.47 billion. Expenditures for upstream represented 92% of the companywide total in the second quarter.
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The company’s cash flow from operations in the first half of 2016 sank more than 60 percent year over year to $3.7 billion.
