Revenues fell 33.4% to US$74.1 billion (RM282.7 billion). Higher volume increased earnings $330 million as the result of new developments.
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Its oil and gas production increased 2 percent to 2.6 million barrels a day in the second quarter, coming from its fields in the United States, Bangladesh and Argentina.
“Our quarterly results reflect the disparate impacts of the current commodity price environment, but also demonstrate the strength of our sound operations, superior project execution capabilities, as well as continued discipline in capital and expense management,” ExxonMobil CEO Rex Tillerson said.
The second-largest U.S. oil company by market value after Exxon Mobil spent $8,724 million in capital expenditures during the quarter. The eliminated positions are across 24 business groups in its corporate center and will result in cost reductions of about $1 billion.
As of this writing, shares of Chevron were down 1.97% at $91.25 per share in premarket trading. However, natural gas output from 2Q2014 fell by 5.8% to 10.1 Bcf/d, down 622 MMcf/d, which the operator blamed on regulatory restrictions in the Netherlands.
Downstream: The segment recorded profits of $1.5 billion in the second quarter, up $795 million year over year, mainly attributable to stronger margins. Chevron sold 535,000 barrels of its branded gasoline a day in the United States, up 2 percent. Oil equivalent production rose 3.6% from last year on the back of an 11.9% increase in liquids and a 5.8% decline in natural gas.
The company posted net income of $571 million, or 30 cents per share, compared with $5.67 billion, or $2.98 per share, in the year-ago period. Only Royal Dutch Shell plc RDS.A was able to cope better with the free fall in commodity prices and reported higher-than-expected profits yesterday. Internationally, the price fell from $101 last year to $56 this year.
U.S. upstream operations incurred a $1.04 billion loss in the quarter, versus year-ago profits of $1.05 billion. The average sales price for crude/liquids was $50/bbl, versus $92 a year ago.
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Amongst the major upcoming projects, Chevron’s Gorgon and Wheatstone natural gas initiatives in Australia are progressing well. Its U.S. production was up 9 percent from a year earlier.
