10-QPeriod: Q1 FY2016

CHEVRON CORP Quarterly Report for Q1 Ended Mar 31, 2016

Filed May 5, 2016For Securities:CVX

Summary

Chevron Corporation reported a net loss attributable to shareholders of $725 million ($0.39 per diluted share) for the first quarter of 2016, a significant downturn from the $2.567 billion net income ($1.37 per diluted share) recorded in the same period of 2015. This loss was primarily driven by a substantial decrease in upstream earnings, which swung from a profit of $1.56 billion to a loss of $1.46 billion, largely due to lower crude oil and natural gas prices. Downstream earnings also declined, though the segment remained profitable, reporting $735 million in the first quarter of 2016 compared to $1.42 billion in the prior year. The company's revenues and other income saw a sharp decrease, falling to $23.55 billion from $34.56 billion year-over-year, also heavily influenced by commodity price declines. Despite the net loss, Chevron maintained its quarterly dividend of $1.07 per share. The company's cash flow from operations was $1.14 billion, down from $2.32 billion in the prior year, as lower commodity prices impacted profitability. Capital expenditures were significantly reduced to $5.57 billion from $7.60 billion in the first quarter of 2015, reflecting a strategic response to the challenging market environment. Total debt increased to $42.3 billion from $38.5 billion at year-end 2015, while the debt ratio rose to 22.0% from 20.2%. Investors should monitor the company's cost management efforts, capital allocation strategies, and the outlook for commodity prices.

Financial Highlights

46 data points
Beta

Revenue

$23.55B

Net Income

-$725.00M

-3.1% Net Margin

EPS (Diluted)

$-0.39

Total Assets

$263.84B

Cash & Equivalents

$8.56B

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$23.55B
SG&A Expenses$998.00M
Operating Expenses$25.26B
Interest Expense$0
Net Income-$725.00M
EPS (Basic)$-0.39
EPS (Diluted)$-0.39
Shares Outstanding (Basic)1.87B
Shares Outstanding (Diluted)1.87B

Key Highlights

  • 1Reported a net loss of $725 million for Q1 2016, a significant decline from a net income of $2.567 billion in Q1 2015.
  • 2Upstream segment earnings swung to a loss of $1.459 billion in Q1 2016 from a profit of $1.560 billion in Q1 2015, primarily due to lower crude oil and natural gas prices.
  • 3Downstream segment earnings decreased to $735 million in Q1 2016 from $1.423 billion in Q1 2015, driven by lower refined product margins.
  • 4Total revenues and other income decreased to $23.55 billion in Q1 2016 from $34.56 billion in Q1 2015.
  • 5Cash provided by operating activities declined to $1.14 billion in Q1 2016 from $2.32 billion in Q1 2015.
  • 6Capital expenditures were reduced to $5.57 billion in Q1 2016 from $7.60 billion in Q1 2015.
  • 7The company maintained its quarterly dividend of $1.07 per share.

Frequently Asked Questions

Chevron reported a net loss attributable to Chevron Corporation of $725 million, or a loss of $0.39 per diluted share, for the three months ended March 31, 2016. This compares to a net income of $2.567 billion, or $1.37 per diluted share, for the same period in 2015.

The primary driver for the significant downturn was the substantial decrease in the Upstream segment's earnings, which fell from a profit of $1.56 billion in Q1 2015 to a loss of $1.46 billion in Q1 2016. This was mainly due to lower crude oil and natural gas prices. Downstream segment earnings also decreased, though it remained profitable, due to lower refined product margins. Lower overall revenues and a decrease in cash flow from operations also contributed to the weaker performance.

Chevron significantly reduced its capital and exploratory expenditures to $5.57 billion in Q1 2016, down from $7.60 billion in Q1 2015, reflecting cost management in response to lower commodity prices. Total debt and capital lease obligations increased to $42.3 billion at March 31, 2016, from $38.5 billion at December 31, 2015, leading to a slight increase in the debt ratio to 22.0%.

Yes, Chevron maintained its quarterly dividend of $1.07 per common share for the first quarter of 2016, consistent with the dividend paid in the first quarter of 2015. The company paid a total of $2.0 billion in dividends during the first three months of 2016.