REUTERS

(REUTERS)

Chevron Reports 1Q Loss Due to Low Oil Prices

Industries Dow Jones Newswires

Chevron on Friday reported a wider-than-expected loss amid lower oil prices and the stronger dollar. 

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Shares in the second-largest energy company in the U.S. by revenue fell 1.5% to $100.91 in premarket trading. 

Chief Executive John Watson said the company's upstream business was impacted by a more than 35% decline in crude-oil prices. 

The company's average sales price per barrel of crude oil and natural gas liquids was $26 in the first quarter, down from $43 a year earlier. 

"Our downstream operations continued to perform well, although overall industry conditions and margins this quarter were weaker than a year ago, " said Mr. Watson. 

Chevron said late last year that it would cut up to 10% of its workforce and slash its capital spending budget by 25% this year. Like many of its peers, the San Ramon, Calif.-based oil company has looked to cut costs as sharply lower energy prices whack profitability. 

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Chevron's upstream operations, which include exploration and drilling, were hit worst by the plunge in energy prices. In the U.S., the segment lost $1.46 billion after earning $1.56 billion a year earlier. In its downstream operations -- refining -- Chevron saw its profit nearly halve to $735 million. 

Overall, Chevron reported a loss of $725 million, or 39 cents a share, down from a profit of $2.57 billion, or $1.37 a share, a year earlier. 

Revenue tumbled 31% to $23.55 billion. Analysts projected a loss of 20 cents on $21.43 billion in revenue, according to Thomson Reuters. 

Also Friday, rival Exxon Mobil Corp., the largest U.S. oil company, said its first-quarter profit plunged 63% as oil prices remain depressed, but the decline was smaller than analysts had predicted. 

Write to Anne Steele at Anne.Steele@wsj.com