| Chevron’s 2Q15 Earnings Fall 90% | |
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Energy Sector Performance Last Week: Recaps from Chevron and More (Continued from Prior Part) Chevron witnesses a 90% fall in its earnings
Chevron (CVX) reported earnings of $571 million for 2Q15 compared to $5.7 billion in the prior year’s corresponding quarter. The company recorded more than $2 billion in impairments and other charges related to suspending projects due to lower oil prices.
Upstream segment swings to a loss while downstream segment churns out profits
Chevron’s exploration and production segment, the upstream segment, reported a loss of $2.2 billion compared to a profit of $5.3 billion in the prior year’s corresponding quarter. To the contrary, the firm’s refining and marketing segment, the downstream segment, reported earnings of $2.96 billion compared to $721 million in the prior year’s corresponding quarter. Chevron is a US oil company that comes only after Exxon Mobil (XOM) in terms of market value. Chevron’s profits are more resistant to downturns in commodity prices since the firm is also involved in refining operations, which have benefitted from lower crude prices.
Cost cutting measures
Chevron’s capital spending fell from $10.2 billion in 2Q14 to $8.7 billion in 2Q15. Several energy firms have cut back on capital expenditure due to falling oil prices.
Integrated oil and gas majors Exxon, Chevron (CVX), and Occidental Petroleum (OXY) also posted weekly losses for their share prices. Together, these firms make up about 32% of the Energy Select Sector SPDR Fund (XLE) and 3% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
In the next part of this series, we’ll explore why the timing of the oil price collapse is so unfortunate.
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Exxon Mobil est une société de production minière et de pétrole basée aux Etats-Unis D'Amerique. Exxon Mobil est cotée au Royaume-Uni, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 499,8 milliards US$ (467,1 milliards €). La valeur de son action a atteint son plus bas niveau récent le 14 mars 1997 à 100,12 US$, et son plus haut niveau récent le 26 avril 2024 à 117,96 US$. Exxon Mobil possède 4 237 270 016 actions en circulation. |