Chevron’s balance sheet turns to black

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Chevron has returned to profit in the first quarter of 2017 as the cumulative effect of increasing oil prices and cost cutting began to weigh favourably on the supermajor’s balance sheet.
The San Ramon-headquartered company reported first quarter earnings of $2.7 billion corresponding with a loss of $725 million in the same period during 2016.
First quarter 2017 revenue included $600 million from the sale of upstream assets, while foreign currency fluctuations decreased Q1 earnings this year by $241 million compared to $319 million a year earlier.
Sales and other operating revenues in first quarter 2017 were $32 billion, compared to $23 billion in the 2016 period.
Chevron Chairman and CEO John Watson, said: “We benefited from increasing crude oil prices and ongoing efficiencies being implemented across the company.
“Our operating expenses were reduced by about 14% from first quarter 2016 and our capital spending declined over 30% from a year ago.”
“Overall net oil-equivalent production in the first quarter increased 3% compared to the 2016 full year and we are on track to meet the 4-9% growth goal for 2017 before the effect of asset sales.”
Chevron’s worldwide net oil-equivalent production was 2.68 million barrels per day in Q1 2017, compared with 2.67 million barrels per day in the 2016 first quarter.
Capital and exploratory expenditures in the most recent quarter was $4.4 billion, compared with $6.5 in 2016.

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