US oil producer Chevron registered earnings of $201 million, or 11 cents/share for the third quarter of 2020, beating analysts’ estimates for a loss of 27 cents/share. However, the profit remained far below the $2.9 billion, or $1.55/share, posted in the same quarter last year. Chevron and rivals have slashed spending significantly amid plummeting oil demand and prices due to the coronavirus pandemic. The company also plans to cut 15% of its 45,000 workforce.
Chevron’s oil and gas output was down 7% year-on-year in the July-September quarter. The company expects its production in the Permian Basin to fall to around 550,000 boepd this quarter from 565,000 boepd in the last quarter. Its oil and gas production posted a modest operating profit thanks to a 12% reduction in expenses and a 48% cut in spending on new projects. For next year, Chevron planned around $14 billion for project spending.
The company promised to prioritize its shareholder dividend despite a 57% year-on-year fall in its operating cash flow. Chevron’s shares gained 1% to $69.52, on Friday, following the earnings call.
