Chevron reveals a massive 80% decline in total earnings in fiscal 2019 in its quarterly report

According to the earnings report released on Friday, the fourth quarter wasn’t kind to Chevron. The company posted $6.6 billion in quarterly loss. The American multinational energy corporation said its write-offs associated with shale gas production amounted to $10.4 billion in the recent quarter. Chevron had already estimated $10 to $11 billion figure for the write-offs last month.

Friday’s report posted the company’s quarterly revenue at $36.35 billion that cam shy of the analysts’ forecast of a much higher $38.639 billion. Losing 14% year over year, Chevron traded around 3.5% lower on Friday. The company cited poor performance of its upstream division for downbeat quarterly results. Chevron’s revenue in 2018’s Q4 was noted at $42.35 billion. In 2019’s third quarter, on the other, revenue was capped at $36.12 billion.

Chevron’s Figures Versus Analysts’ Estimates

On the earnings front, analysts had anticipated the energy company to make $1.45 of earnings per share in the recent quarter. Chevron, however, beat the estimate with a higher $1.49 of earnings per share in the fourth quarter. In the same quarter last year, Chevron had made $1.95 of earnings per share. In the previous quarter, the company had recorded $1.36 of earnings per share.

Total earnings for Chevron in fiscal 2019 were reported at $2.924 billion that marked a massive 80% decline as compared to 2018’s $14.824 billion. Oil equivalent production remained unchanged (year over year) at 3.08 million BPD (barrels per day). It was also reported to be the first time for Chevron that its annual daily production crossed the 3 million BPD mark.

Chevron’s upstream division in the U.S had earned $964 million in the fourth quarter of 2018 versus a loss of $7.5 billion in the recent quarter. Oil and natural gas liquids, as per the company, lost 16% (as compared to 2018) in terms of the average sale price per barrel that was recorded at $47.

Chevron’s Performance In The Stock Market

WTI (West Texas Intermediate) crude prices in the United States were 15% lower in January while Brent crude (international benchmark) lost around 12%.

Chevron’s performance in the stock market in 2020 has been challenged so far. The stock opened at around $121.0 in January. Recording more than 10% of monthly loss, the stock is exchanging hands at $106.67 at the time of writing. The current price for company shares is almost the same as that of January 2019.