Oil and gas giant Chevron said its second-quarter profit was at $571 million, down 90 percent as compared to 2014.
Sales and other operating revenues in second quarter 2015 were $37 billion, compared to $56 billion in the year-ago period.
“Second quarter financial results were weak, reflecting a crude price decline of nearly 50 percent from a year ago. Our Upstream businesses were particularly hard hit, as lower prices reduced revenues and triggered impairments and other charges,” said Chevron’s Chairman and CEO John Watson.
“Multiple efforts to improve future earnings and cash flows are underway,” Watson continued. “We’re getting our cost structure down, through renegotiations across the supply chain and by sizing our contractor and employee workforce to reflect lower activity levels going forward. We’re actively managing to a smaller capital program, as projects currently under construction come online and as potential new projects are paced and re-bid. In addition, our 4-year divestment program is ahead of pace.”
According to Watson, project execution on the company’s giant Gorgon and Wheatstone LNG projects in Australia is a priority for Chevron.
“Incremental production and cash generation from these projects and others, along with a curtailed capital program, should provide support for continuing competitive shareholder distributions,” he concluded.