Chevron Corporation reported earnings of USD415 million for fourth quarter 2016, compared with a loss of USD588 million in the 2015 fourth quarter.
Foreign currency effects increased earnings in the 2016 quarter by USD26 million, compared with an increase of USD46 million a year earlier.
Full-year 2016 results were a loss of USD497 million compared with earnings of USD4.6 billion in 2015.Sales and other operating revenues in fourth quarter 2016 were USD30 billion, compared to USD28 billion in the year-ago period. The earnings in the 2016 is as a result of the low prices of oil and gas during the course of the year. The company managed the situation by cutting its capital and operating expenses for the year.
The Chairman and CEO John Watson commented on the result saying. “We responded aggressively to those conditions, cutting capital and operating expenses by USD14 billion. We are well positioned to improve earnings and be cash flow balanced in 2017 through continued tight spending and cost control and additional revenue from expected production growth. That confidence enabled us to increase the 2016 annual dividend payout for the 29th consecutive year.”
Watson added that“We were able to reach noteworthy milestones in 2016 on major capital projects,”. “We achieved first gas and cargo shipments at our Gorgon Project in Australia,first gas at our Chuandongbei Project in China, and increased production from our Permian Basin shale and tight oil properties. In addition, we announced the final investment decision on the Future Growth and Wellhead Pressure Management Project at the company’s 50 percentowned affiliate, Tengizchevroil, in Kazakhstan.”
