Chevron reported its first full year loss in at least 30 years but saw its fourth quarter results improve year-over-year.
Chevron reported earnings of $415 million, $0.22 per diluted share, for fourth quarter 2016 compared with a loss of $588 million in the 2015 fourth quarter.
Chevron booked a full year 2016 loss of $497 million, or $0.27 per diluted share, compared with earnings of $4.6 billion in 2015.
According to Bloomberg, Chevron’s full year loss was the first annual loss that the company has reported since at least 1980.
Sales and other operating revenues were $30 billion for the fourth quarter of 2016, down from $28 billion in the year-ago period.
Upstream segment earnings came in at $930 million for the fourth quarter 2016 compared to a loss of $1.36 billion in the fourth quarter of 2015.
Full year 2016 upstream earnings fell to a loss of $2.53 billion compared to a loss of $1.96 billion for the full year of 2015.
U.S. upstream earnings climbed to $121 million in the fourth quarter of 2016, up from a loss of $1.95 billion in the prior-year quarter.
Full year 2016 U.S. upstream earnings came in at a loss of $2.05 billion compared to a loss of $4.05 billion in 2015.
The company’s international upstream segment earned $809 million in the fourth quarter of 2016, up from $593 million in the prior-year quarter.
Full year international upstream earnings fell to a loss of $483 million for 2016, down from earnings of $2.09 billion for the full year 2015.
The company’s downstream segment earned $357 million for the fourth quarter, down from $1.01 billion in the year-ago period.
Chevron’s downstream segment earned $3.43 billion for the full year 2016, down from $7.6 billion for the full year 2015.
U.S. downstream operations were breakeven in fourth quarter 2016 compared with earnings of $496 million a year earlier.
Chevron said the decreases was was due to lower margins on refined product sales and higher tax items.
Full year U.S. downstream earnings declined to $1.3 billion compared to $3.18 billion for the full year 2015.
International downstream earnings, including currency effects, fell to $357 million for the fourth quarter 2016, down from $515 million in the prior-year quarter.
Full year 2016 international downstream earnings declined to $2.12 billion compared to $4.41 billion in the prior year.
Worldwide net oil-equivalent production was 2.67 million barrels per day in fourth quarter 2016, essentially unchanged from the 2015 fourth quarter.
Net oil-equivalent production for the full year 2016 was 2.59 million barrels per day, a decrease of 1 percent from the prior year.
Chevron CEO and chairman John Watson said the company added about 900 million barrels of net oil equivalent proved reserves in 2016.
Cash flow from operations in 2016 was $12.8 billion, compared with $19.5 billion in 2015.
Capital and exploratory expenditures in 2016 were $22.4 billion, compared with $34.0 billion in 2015.
Net charges in fourth quarter 2016 were $872 million, compared with $238 million in the year-ago period.
“Our 2016 earnings reflect the low oil and gas prices we saw during the year. We responded aggressively to those conditions, cutting capital and operating expenses by $14 billion. We are well positioned to improve earnings and be cash flow balanced in 2017 through continued tight spending and cost control and additional revenue from expected production growth,” Watson said.