{"id":54477,"date":"2020-07-31T09:53:57","date_gmt":"2020-07-31T14:53:57","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54477"},"modified":"2020-07-31T09:56:29","modified_gmt":"2020-07-31T14:56:29","slug":"chevron-shares-slide-after-recording-historic-quarterly-loss","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54477","title":{"rendered":"Chevron Shares Slide After Recording Historic Quarterly Loss"},"content":{"rendered":"\n

Chevron Shares Slide After Recording Historic Quarterly Loss<\/a><\/h3>\n\n\n\n

Chevron Corporation reported<\/a> a loss of $8.3 billion for the second-quarter 2020, the worst quarterly decline in a generation, and warned: “COVID-19 significantly reduced demand for our products and lowered commodity prices.” <\/em><\/strong><\/p>\n\n\n\n

Chevron lost $1.59 per share on an adjusted basis while recording revenues around $13.49 billion. In the same quarter last year, the oil giant earned $2.27 per share on $36.32 billion. <\/p>\n\n\n\n

The earnings bloodbath<\/a> was mostly due to a collapse in demand for the company’s energy products and a 60% YoY plunge in its average price per barrel of oil and natural gas liquids. h\/t Bloomberg <\/em><\/a><\/p>\n\n\n\n

The quarterly loss was also due to a massive write-down of $1.8 billion in energy assets. The company fully impaired its $2.6 billion Venezuela operations from its books following U.S. sanctions. <\/p>\n\n\n\n

Chevron shares slid 3% on the earnings announcement. <\/p>\n\n\n\n

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<\/a><\/p>\n\n\n\n

“The past few months have presented unique challenges,” said Michael Wirth, Chevron CEO, in a statement.<\/p>\n\n\n\n

 “The economic impact of the response to COVID-19 significantly reduced demand for our products and lower commodity prices. Given the uncertainties associated with economic recovery and ample oil and gas supplies, we made a downward revision to our commodity price outlook, which resulted in asset impairments and other charges,” said Wirth. <\/p><\/blockquote>\n\n\n\n

Chevron warned, “demand and commodity prices have shown signs of recovery, they are not back to pre-pandemic levels<\/strong><\/em>, and financial results may continue to be depressed into the third quarter of 2020.” <\/p>\n\n\n\n

Despite the considerable loss, Wirth claimed the company would “protect the dividend,<\/strong> invest for long term value, and maintain a strong balance sheet.”<\/p>\n\n\n\n

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<\/a><\/p>\n\n\n\n

But, it is hard to believe Chevron can justify maintaining its dividend at such a high cost <\/strong>with the economy now reversing<\/a> and demand for energy products likely to falter in the back half of the year. <\/p>\n","protected":false},"excerpt":{"rendered":"

Chevron Shares Slide After Recording Historic Quarterly Loss Chevron Corporation reported a loss of $8.3 billion for the second-quarter 2020, the worst quarterly decline in a generation, and warned: “COVID-19 significantly reduced demand for our products and lowered commodity prices.”  Chevron lost $1.59 per share on an adjusted basis while recording revenues around $13.49 billion. In the same quarter last year, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[129,5644,1729,589,855,4318],"class_list":["post-54477","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-chevron","tag-gasoline-demand","tag-oil-and-gas-industry","tag-oil-demand","tag-viral-pandemic","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54477"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54477\/revisions"}],"predecessor-version":[{"id":54478,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54477\/revisions\/54478"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}