Chevron Corp. on Friday reported a loss for the second quarter, its biggest in nearly 15 years, mainly due to decline in refining income and crude oil prices.
The adjusted results surpassed Wall Street estimates, though the company underlined that the energy industry is experiencing a deep uncertainty at a time when low commodity prices have hurt profitability.
The second largest U.S.-based oil producer said that it lost $1.47 billion, or 78 cents a share for the second quarter, as compared to a net profit of $571 million, or 30 cents a share in the same period last year. Excluding one-time items, the company reported earnings of 35 cents a share. Analysts surveyed by Thomson Reuters I/B/E/S were looking for earnings of 32 cents per share for the latest quarter.
Revenue for the quarter came in at $29.28 billion, down 27 percent from the year-earlier quarter, though above analysts’ estimate of $28.54 billion.
The company’s Chief Executive Officer, John Watson said the results exhibit Chevron’s ongoing adjustment to sluggish oil prices across the world. However, Watson said that the company remains dedicated to becoming cash flow neutral, or at least produce as much money as it spends.
Chevron said that production slipped approx. 3 percent to 2.53 million barrels of oil equivalent per day. The loss in its biggest division, which produces oil and natural gas, increased to $2.46 billion as it lost money in both U.S. and overseas markets.
In the refining unit, profit plummeted both domestically and internationally mainly due to an industrywide excess of fuel and other refined products.
The California-based company reported that it was cutting expenses, slashing $6 billion from its capital budget and operating costs during the first half of the year.
Chevron’s rival Exxon Mobil Corp also posted a drop of 60 percent in its quarterly profit on Friday.