Summary
Chevron Corporation reported significantly lower net income attributable to the company for the second quarter and the first six months of 2015 compared to the same periods in 2014. This decline is primarily attributed to a substantial drop in crude oil and natural gas prices, which negatively impacted the upstream segment's profitability. The upstream segment, which is the primary driver of Chevron's earnings, incurred significant losses in the first half of 2015. Conversely, the downstream segment showed improved performance, largely driven by gains from asset sales, notably the divestiture of its interest in Caltex Australia Limited, and higher refining margins. Despite the challenging commodity price environment, Chevron maintained its dividend payments to shareholders and continued its capital expenditure program, albeit at a reduced pace compared to the prior year. The company's liquidity remains strong, with significant cash and cash equivalents. However, investors should note the ongoing risks associated with volatile commodity prices and significant legal contingencies, particularly the prolonged litigation in Ecuador.
Financial Highlights
46 data points| Revenue | $40.36B |
| SG&A Expenses | $1.17B |
| Operating Expenses | $38.99B |
| Interest Expense | $0 |
| Net Income | $571.00M |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.30 |
| Shares Outstanding (Basic) | 1.87B |
| Shares Outstanding (Diluted) | 1.88B |
Key Highlights
- 1Net income attributable to Chevron Corporation for Q2 2015 was $571 million ($0.30 per share), a sharp decrease from $5.7 billion ($2.98 per share) in Q2 2014. For the first six months, net income was $3.1 billion ($1.67 per share) versus $10.2 billion ($5.34 per share) in the prior year.
- 2The Upstream segment reported a loss of $2.2 billion in Q2 2015 and a loss of $659 million for the first six months, a significant deterioration from earnings of $5.3 billion and $9.6 billion, respectively, in the comparable periods of 2014. This was primarily due to lower crude oil and natural gas realizations.
- 3The Downstream segment's earnings increased substantially to $3.0 billion in Q2 2015 and $4.4 billion for the first six months, up from $721 million and $1.4 billion in the prior year. This improvement was driven by a $1.6 billion gain from the sale of the company's interest in Caltex Australia Limited and higher refining margins.
- 4Total revenues and other income significantly declined to $40.4 billion in Q2 2015 and $74.9 billion for the first six months, compared to $57.9 billion and $111.2 billion, respectively, in the prior year, reflecting lower commodity prices.
- 5Capital expenditures were reduced to $15.2 billion for the first six months of 2015 from $17.5 billion in the same period of 2014, reflecting a moderated pace of investment.
- 6The company paid $4.0 billion in dividends to common shareholders in the first six months of 2015, maintaining its commitment to shareholder returns.
- 7Chevron reported $12.2 billion in cash and cash equivalents at June 30, 2015, indicating a strong liquidity position.