Chevron posted a net loss in the fourth quarter as steep losses in its US upstream business more than wiped out the income made by the non-US business.
"We are taking significant action to improve earnings and cash in this low price environment," chief executive John Watson said in a statement. "Our 2015 earnings were down significantly from the previous year, reflecting a nearly 50pc year-on-year decline in oil prices."
The major's US upstream operations posted a loss of $1.95bn in the fourth quarter versus an income of $432mn a year earlier, and a loss of $4.06bn for the full year compared with an income of $3.33bn a year earlier. Non-US upstream operations posted an income of $593mn in the fourth quarter, down 74pc from the year earlier level of $2.24bn. For the full year, non-US upstream income fell by 85pc to $2.09bn versus $13.57bn a year earlier.
That resulted in a total upstream business loss of $1.36bn in the fourth quarter versus an income of $2.67bn a year earlier. For the full year, the losses were $1.96bn compared with an income of $16.89bn a year earlier.
To cope with the fall in prices and to stem losses, the major reduced its capital expenditure (capex) and operating expenses. Capex in 2015 fell by 16pc to $34bn compared with $40.3bn a year earlier.
Operating and general and administrative (G&A) expenses fell to $7.27bn in the fourth quarter from $7.94bn a year earlier. For the full year, they fell to $27.48bn from $29.78bn a year earlier.
Its average US sale price for crude oil fell to $35/bl in fourth quarter from $66/bl a year ago. The non-US average sale price fell to $39/bl from $68/bl a year earlier.
Net US output rose by 7pc from a year earlier to 719,000 b/d of oil equivalent (boe/d) in the fourth quarter. Output increases due to project ramp-ups in the US Gulf of Mexico (GoM) and the Permian Basin in Texas and New Mexico were partially offset by normal field declines and due to asset sales.
Non-US net output rose by 2pc from a year earlier to 1.95mn boe/d as gains in output in Bangladesh were partially offset by the continued shut-in of its Wafra project in the Neutral Zone between Saudi Arabia and Kuwait.
The major's downstream business saw fourth quarter income fall to $1.01bn from $1.52bn. But for the full year, they gained to $7.6bn from $4.34bn a year earlier.
As of the end of the year, the major's cash and cash equivalent fell by $1.9bn from a year earlier to $11.3bn. Cash flow from operations fell to $19.5bn for the year from $31.5bn a year earlier. Total debt as of 31 December increased by $10.8bn from a year earlier to $38.6bn.
The major posted a net loss of $588mn in the fourth quarter compared with an income of $3.47bn a year earlier.
