Chevron posts worst profit in nearly 13 years

Brent Lewin | Bloomberg | Getty Images The Chevron logo is shown at Chevron Plaza in Calgary, Alberta, Canada.

Brent Lewin | Bloomberg | Getty Images
The Chevron logo is shown at Chevron Plaza in Calgary, Alberta, Canada.

Chevron delivered quarterly earnings that fell well short of analysts’ expectations on Friday.

Chevron shares fell in premarket trading following the announcement. (Click here to track its shares.)

The company posted net income of $571 million, or 30 cents per share, compared with $5.67 billion, or $2.98 per share, in the year-ago period. It was the worst quarterly profit in nearly 13 years.

Revenue fell to $40.36 billion from $57.94 billion a year ago.

Wall Street expected Chevron to deliver quarterly earnings per share of $1.16 on $30.91 billion in revenue, according to consensus estimates from Thomson Reuters.

Production rose 2 percent to 2.6 million barrels of oil equivalent per day (boe/d).

Lower oil prices have hurt oil giants like Chevron and Exxon Mobil. Many analysts have predicted prices could fall further still throughout the end of the year.

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Earlier this week, the energy giant announced it will cut about 1,500 jobs to cut costs. The eliminated positions are across 24 business groups in its corporate center and will result in cost reductions of about $1 billion.

“In light of the current market environment, Chevron is taking action to reduce internal costs in multiple operating units and the corporate center,” Chevron said, in the statement. “These initiatives, which are currently underway, are focused on increasing efficiency, reducing costs and focusing on work that directly supports business priorities.”

Shares of Chevron have sunk about 29 percent over the last 12 months.

Reuters contributed to this report.

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