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It
was the latest sign that the more than 70 percent drop in oil
prices since 2014 has humbled a once-strong energy sector and
forced it to curtail new projects, lay off staff and shrink
spending.
Chevron last month had already signaled its pain by cutting its
2016 budget by 24 percent to $26.6 billion, part of a strategy
to contend with lower oil prices and hunker down for a hoped-for
price rebound.
Smaller rivals Hess Corp <HES.N>, Continental Resources <CLR.N>
and Noble Energy <NBL.N> cut their own budgets early this week,
ranging from 40 percent to 66 percent.
"We're taking significant action to improve earnings and cash
flow in this low price environment," John Watson, Chevron's
chief executive, said in a press release.
The company posted a fourth-quarter net loss of $588 million, or
31 cents per share, compared with a net profit of $3.47 billion,
or $1.85 per share, in the year-ago period.
The last time Chevron posted a quarterly loss was the third
quarter of 2002.
Production rose 4 percent to 2.67 million barrels of oil
equivalent per day in the quarter ended Dec. 31.
The bulk of Chevron's losses came from its divisions that
explore for and produce oil and natural gas, with its U.S.
division alone posting a loss of $1.95 billion.
Surprisingly, Chevron's refining divisions also saw profit
plunge. Refiners typically see profitability increase when the
price of their main feedstock - oil - falls. Chevron said the
drop was due to a boost in the prior year from asset sales, and
also smaller margins on specialty refined products.
Shares of Chevron have slid about 5 percent so far this year,
closing Thursday at $85.86 per share.
(Reporting by Ernest Scheyder Editing by W Simon)
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