Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Chevron profit up on asset sales, output, cuts 2020 spending plans

    Chevron profit up on asset sales, output, cuts 2020 spending plans

    May 3, 2020
    Share
    Facebook Twitter LinkedIn WhatsApp

    Houston — Chevron Corp has reported a 38% increase in quarterly profit bolstered by asset sales but plans to expand cost cuts amid falling demand and weak prices for oil and gas.

    Global fuel demand has crashed by a third while many people shelter at home for an indefinite period. Major oil companies have largely reported losses in the latest period as an oil glut and coronavirus-related lockdowns sent prices to historic lows.

    Chevron beat Wall Street expectations with a $3.6 billion profit, up from $2.6 billion during the same period last year. Results were boosted by $1.6 billion gain, largely from sale of oil and pipeline properties in Azerbaijan.

    Cash flow from operations covered its dividend and capital spending, leaving Chevron “in a strong position weather the storm,” said Anish Kapadia of Palissy Advisors.

    Shares were down 3% at $89.44 on Friday.

    The second-largest U.S. oil producer benefited from higher earnings from its refinery business and increased oil output, offset by weaker prices.

    The outlook for a continued oil glut prompted Chevron to further cut its 2020 spending budget to $14 billion, down 30% from its plan before the oil price crash. The percentage cut matches those at bigger rivals.

    The cuts are “across the board,” but include additional trims to shale oil projects and deferred spending at a major expansion project in Kazakhstan, Chief Financial Officer Pierre Breber said in an interview.

    The company has “pulled expansion down significantly” at its Permian shale unit. It expects to end the year with Permian output about 125,000 bpd below its 600,000 bpd target.

    “We will come out of this crisis, but we will come out with inventories pretty full because there’s so much oil and products in storage,” Breber said.

    A 68% drop in profit from its U.S. oil business was offset by strong earnings in international oil and gas, which rose 13% on the rise in the U.S. dollar and asset sales. Refinery profits more than tripled to $1.1 billion last quarter.

    Chevron held its dividend steady, while Royal Dutch Shell cut its dividend for the first time since World War Two. Equinor also cut its dividend, while BP Plc (BP.L) and Exxon kept their dividends stable.

    Oil and gas output rose to 3.24 million barrels per day (bpd), an increase of more than 6%. The company plans to curtail its oil output by as much as 300,000 bpd in May and by up to 400,000 bpd in June, Breber said.

    Follow us on twitter

    • Reuters

    Related News

    Oil prices rally as United States sanctions on Venezuela ease supply worries

    Oil prices climb to 2-month high on US-China trade deal, worries about Iran supply

    Nigeria partners Brazil to develop methanol complex 

    Nigeria says divestment paying off as oil output rises

    E-book
    Resilience Exhibition

    Latest News

    Oil prices climb to 2-month high on US-China trade deal, worries about Iran supply

    June 11, 2025

    Kenya central bank lowers 2026 growth forecast to 5.4%

    June 11, 2025

    Nigeria partners Brazil to develop methanol complex 

    June 11, 2025

    FG to train 100,000 youths annually in forex trading

    June 11, 2025

    China, Africa ask US to return to ‘right track’ on trade differences

    June 11, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.