Chevron reports full-year 2020 loss of $5.5bn

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Mordi chukwunonso Esther 

Chevron Corporation has reported a full-year 2020 loss of $5.5 billion.It also reported a loss of $665 million for the fourth quarter 2020.

In a statement issued from its San Ramon, California headquarters in the United States, and obtained by SweetcrudeReports, the company said the $5.5 billion full-year 2020 loss compared with earnings of $2.9 billion in 2019.

Included in the 2020 loss were net charges for special items of $4.5 billion, compared to net charges of $8.7 billion for special items in 2019.

According to the company also, the $665 million fourth quarter 2020 loss compared with a loss of $6.6 billion in the fourth quarter 2019.

The company, in the statement, said the loss in the quarter under review included a charge of $120 million associated with its acquisition of the independent oil and natural gas exploration and production company, Noble Energy in a deal Chevron said brought high quality assets to its global operations.

It said foreign currency effects decreased earnings by $534 million.

“Foreign currency effects decreased earnings in 2020 by $645 million. Adjusted loss of $368 million ($(0.20) per share – diluted) in full-year 2020 compares to adjusted earnings of $11.9 billion ($6.27 per share – diluted) in full-year 2019…Sales and other operating revenues in fourth quarter 2020 were $25 billion, compared to $35 billion in the year-ago period,” the statement read.

“2020 was a year like no other,” said Mike Wirth, Chevron’s chairman of the board and chief executive officer. “We were well positioned when the pandemic and economic crisis hit, and we exited the year with a strong balance sheet, having completed a major acquisition and increased our dividend payout for the 33rd consecutive year.”

“When market conditions deteriorated, we swiftly reduced capital spending by 35 percent from 2019 and also reduced operating costs, demonstrating our commitment to capital and cost discipline,” Wirth stated, adding that excluding severance expense, 2020 operating expenses were down $1.4 billion from the prior year.

Chevron also completed an enterprise-wide transformation programme and the integration of Noble Energy, positioning the company for the future, Wirth said.

He added: “The acquisition of Noble Energy was completed in October, adding high-quality assets, opportunities and people to Chevron”. He said the company also generated asset sales proceeds of $2.9 billion in 2020, including the sale of its Appalachia natural gas business in Virginia, United States in December.

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