CHEVRON CORP Quarterly Report for Q3 Ended Sep 30, 2020

Summary

Chevron Corporation reported a net loss attributable to Chevron Corporation of $207 million for the third quarter of 2020, a significant decline from the $2.58 billion profit recorded in the same period of 2019. This downturn is primarily attributed to the ongoing impacts of the COVID-19 pandemic, which led to decreased demand for energy products and a sharp drop in commodity prices. For the first nine months of 2020, the company incurred a net loss of $4.88 billion, a stark contrast to the $9.53 billion profit in the prior year. Despite the challenging operating environment, Chevron demonstrated resilience by adjusting its operations and capital expenditures. The company has lowered planned 2020 capital expenditures significantly and is on track to reduce operating costs. Management highlighted a strong balance sheet and sufficient liquidity to navigate the current market conditions and protect shareholder value, including the commitment to maintaining the common stock dividend.

Key Highlights

• 1Reported a net loss of $207 million for Q3 2020, compared to a profit of $2.58 billion in Q3 2019.
• 2Incurred a net loss of $4.88 billion for the first nine months of 2020, compared to a profit of $9.53 billion in the same period of 2019.
• 3Revenues and other income significantly declined, driven by lower commodity prices and reduced demand due to the COVID-19 pandemic.
• 4Upstream segment earnings decreased substantially due to lower crude oil and natural gas realizations and volumes.
• 5Downstream segment earnings also saw a decline, impacted by lower refined product margins and sales volumes.
• 6The company has implemented cost-saving measures, including a reduction in planned capital expenditures and operating costs.
• 7Maintained a commitment to protecting the common stock dividend and a strong balance sheet despite challenging market conditions.

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