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Chevron reported a $588 million fourth quarter loss on Friday as low oil prices weighed on upstream earnings.

The company reported a loss of $588 million, or $0.31 per diluted share, for the fourth quarter of 2015, down significantly from earnings of $3.5 billion in the fourth quarter of 2014.

Full year 2015 earnings fell to $4.6 billion, or $2.45 per diluted share, down from $19.2 billion, or $10.14 per diluted share, in 2014.

Sales and other operating revenues in the fourth quarter of 2015 were $28 billion, compared to $42 billion in the year-ago period.

The company’s upstream segment slid to a $1.36 billion loss in the fourth quarter, down from earnings of $2.67 billion in the prior year quarter.

The upstream segment posted a loss of $1.96 billion for the full year of 2015, a significant drop from $16.89 billion in earnings reported in 2014.

Low oil prices and higher exploration costs dragged the company’s U.S. upstream operations to a $1.95 billion loss in fourth quarter 2015, down from earnings of $432 million a year earlier.

Weak crude prices also weighed on Chevron’s international upstream operations with the area posting $593 million in fourth quarter earnings compared with $2.24 billion in the fourth quarter of 2014.

The company’s average sales price per barrel of crude oil and natural gas liquids was $35 in fourth quarter 2015, down from $66 a year ago.

Chevron’s downstream segment fared better with full year earnings of $7.6 billion, up from $4.33 billion in 2014, and fourth quarter earnings of $1.01 billion, down from $1.51 billion in the fourth quarter of 2014.

International downstream operations earned $515 million in fourth quarter of 2015, down from $629 million during the same period in 2014.

U.S. downstream earnings fell to $496 million in fourth quarter 2015 from $889 million a year earlier, primarily due to “to the absence of 2014 gains on asset sales,” Chevron said.

Fourth quarter earnings tied to all other activities came it at a $238 million loss, up from a $720 million loss in the prior year quarter, and a full year loss of $1.05 billion compared to a loss of $1.98 billion in 2014.

Chevron earned $6 billion in proceeds from asset sales in 2015 and has said it has planned further sales for 2016 to 2017.

Net charges in fourth quarter 2015 were $238 million, compared with $720 million in the year-ago period.

Chairman and CEO John Watson said he expects cuts to operating expenses and capital spending on par with the $9 billion the company slashed from its 2015 spend compared to the  previous year.

Watson said that the company added about 1.02 billion barrels of net oil equivalent proved reserves in 2015.

The additions, still subject to final reviews, equate to about 107 percent of the company’s net oil-equivalent production for the year.

The largest additions were from production entitlement effects in several locations and drilling results for the Permian Basin in the United States and the Wheatstone Project in Australia.

At year-end, balances of cash, cash equivalents, time deposits and marketable securities totaled $11.3 billion, a decrease of $1.9 billion from the end of 2014.

Total debt as of December 31, 2015 stood at $38.6 billion, an increase of $10.8 billion from a year earlier.

Chevron’s worldwide net oil-equivalent production was 2.67 million barrels per day in fourth quarter 2015, up from 2.58 million barrels per day in the 2014 fourth quarter.

Capital and exploratory expenditures in 2015 were $34 billion, down from $40.3 billion in 2014.

Expenditures for upstream represented 92 percent of the companywide total in 2015, Chevron said.

“Our 2015 earnings were down significantly from the previous year, reflecting a nearly 50 percent year-on-year decline in crude oil prices. We’re taking significant action to improve earnings and cash flow in this low price environment,” Watson said.