Chevron Corp. (CVX) said Friday its net income and revenue dropped in the fourth-quarter as oil and gas prices slumped, and the company said it plans significant cuts in spending in 2015.
Chevron said net income sank 30 percent and revenue declined 18 percent in the fourth quarter, as it earned $3.47 billion, or $1.85 per share, on $46.09 billion in revenue. Its profit includes $570 million from asset sales, and the company does not report an adjusted figure that excludes that gain and other one-time items.
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Zacks Investment Research says analysts expected Chevron to report a profit of $1.67 per share.
The San Ramon, California-based company said its average sales price for crude oil and natural gas liquids fell 27 percent in the U.S., to $66 per barrel, and 33 percent to $68 in other markets. The price of oil has fallen by more than half since June, which has taken its toll on profits for Chevron and its competitors and sent their stock prices sinking.
Chevron's results are consistent with the difficulties facing other companies in its industry: recently several oil producers and service companies have announced layoffs and reductions in spending on new drilling projects. BP told workers Monday that it would freeze pay for 2015, and on Thursday Royal Dutch Shell said its fourth-quarter profit fell 57 percent.
Exxon Mobil reports its results on Monday, followed by BP on Tuesday.
Chevron announced a budget with $35 billion invested in capital spending and exploration in 2015. That's down 13 percent from 2014.
Shares of Chevron lost 60 cents to $102.40 in morning trading. The stock has declined 8 percent since the beginning of the year and its trading close to annual lows. It reached an all-time high of $135.10 in July.
For the year, Chevron said its net income slid to $19.24 billion, or $10.14 per share, and revenue declined to $211.97 billion.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CVX at http://www.zacks.com/ap/CVX
Keywords: Chevron, Earnings Report