Chevron posts US$8.3 billion loss on write downs, job cuts

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Chevron posts US$8.3 billion loss on write downs, job cuts
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Chevron Corp posted a quarterly net loss on Friday, as the second largest U.S. oil producer took charges of US$5.2 billion due to a collapse in ...

HOUSTON: Chevron Corp on Friday reported an US$8.3 billion loss on asset writedowns from plummeting fuel prices, a forced exit from Venezuela and expenses tied to thousands of jobs cuts.

The massive writedowns reflect the global economic downturn caused by the pandemic, and follow a US$10 billion writedown of mostly natural gas properties in the fourth quarter of 2019. Oil companies are reducing the value of holdings as a realization grows that a deepening economic downturn could depress energy prices for years.

The writedown of oil and gas properties included non-shale operations in the Permian Basin, the top U.S. oilfield, offshore Gulf of Mexico fields, and undefined properties outside the United States, he said. The loss reflects an average 65per cent reduction in the prices received for its petroleum produced last quarter as demand plummeted amid COVID-19 travel restrictions and declining industrial demand for fuels.

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