Tallahassee Journal

Chevron cuts 2015 expansion budget by 13%

Chevron cuts 2015 expansion budget by 13%

Oil giant Chevron said Friday it would reduce expansion spending by 13% this year as fourth-quarter and yearly earnings declined on lower crude prices. Chevron plans to spend $35 billion on capital and exploratory investments in 2015 — 13% less than it did last year. The fast-and-furious drop in oil prices, which have fallen close to 60% since the summer, are cinching oil companies’ wallets across the board, which is likely to lead to industry layoffs in the coming year.101868389-chevron.530x298

Royal Dutch Shell said Thursday it plans to shave $15 billion in costs over the next three years, including a reduction in exploration and share buybacks, amid growing uncertainty over the impact of lower oil prices. ConocoPhillips reduced its 2015 spending plans by 15%. Shares of Chevron dropped 1.8% Friday to $101.17 a share.

The San Ramon, Calif., company reported earnings Friday of $3.5 billion, or $1.85 a share for the three-month period ended in December. That’s above analysts’ expectations for net income of $1.63 a share, according to analysts surveyed by Thomson Reuters, but it’s below last year’s fourth-quarter earnings of $2.57 a share.

For the full year, Chevron reported earnings of $19.2 billion, or $10.14 per share, compared with $21.4 billion, or $11.09 per share, in 2013. “Our 2014 earnings were down from the previous year, largely due to the sharp decline in crude oil prices,” Chairman and CEO John Watson said.


August 2017
« Jul