Chevron Corporation reported a loss of $207 million for the third quarter of 2020, compared with earnings of $2.6 billion in the same quarter in 2019. Included in the current quarter was a charge of $130 million attributable to a tax item related to an international upstream end-of-contract settlement and a non-cash provision of $90 million for remediation of a former mining asset. Foreign currency effects decreased earnings by $188 million.
Adjusted earnings of $201 million in the third quarter of 2020 compares to $2.9 billion in 2019. Sales and other operating revenues in third quarter 2020 were $24 billion, compared to $35 billion in the year-ago period.
Michael K. Wirth, Chevron’s chairman of the board and chief executive officer said the results were primarily due to lower commodity prices and margins resulting from the impact of COVID-19.
“The world’s economy continues to operate below pre-pandemic levels, impacting demand for our products which are closely linked to economic activity.”
“We remain focused on what we can control – safe operations, capital discipline and cost management,” Wirth continued. “Compared to last year’s third quarter, organic capital expenditures and operating expenses were down 48 per cent and 12 per cent, respectively.”
“I’m proud of our employees’ continued focus on safe and reliable operations during these challenging times,” Wirth added. “Our actions are guided by our long-standing financial priorities: to protect the dividend, invest for long term value and maintain a strong balance sheet.”
The company’s acquisition of Noble Energy, Inc. was completed in October following approval by Noble Energy shareholders.
Wirth said, “Noble’s high-quality assets, including those in the Eastern Mediterranean, Colorado’s DJ Basin and the Permian Basin, strengthen our portfolio and are expected to increase the long-term value of our company.”
The company’s joint venture, CalBioGas LLC, successfully started production of dairy biomethane, a renewable natural gas (RNG), from dairy farms in California and marketed it as an alternative fuel for heavy-duty trucks and buses. The company also announced the formation of a joint venture with Brightmark LLC to produce and market additional dairy biomethane.
Lastly, the company signed an agreement in October to sell its Appalachia natural gas business. The transaction is expected to close before the end of the year.