Chevron Swings to 4Q Loss, Beats Adj Earnings Expectations

By Dave Sebastian
Chevron Corp. (CVX) swung to a loss in the fourth quarter on asset-impairment charges and reported lower revenue, though it beat adjusted-earnings expectations.
The second-largest U.S. oil company on Friday posted a net loss of $6.61 billion, or $3.51 a share, compared with earnings of $3.73 billion, or $1.95 a share, in the comparable quarter last year.
The company attributed the loss to upstream impairments and writeoffs of $10.4 billion related to Appalachia shale, Kitimat LNG, Big Foot and other projects. Chevron said it gained $1.2 billion on the sale of the U.K. Central North Sea assets, while foreign currency weighed $256 million on earnings.
Excluding special items and the effect of foreign exchange, earnings were $1.49 a share. Analysts polled by FactSet were expecting adjusted earnings of $1.47 a share.
Revenue fell to $36.35 billion from $42.35 billion the same period last year. Analysts were looking for $38.96 billion.
The company said its average sales price per barrel of crude oil and natural gas liquids was $47 for the quarter, down from $56 a year earlier.
The company in December said it was writing down the value of its assets by more than $10 billion amid a fossil-fuels glut, the largest write-down by an energy producer in years. Chevron is also restructuring its operations to focus on fewer prospects in the face of persistently low natural gas prices and will explore sales of some assets.