San Ramon oil mammoth Chevron Corp. posts surprise profit as cost cuts deepen



by   |  VIEW 1386

San Ramon oil mammoth Chevron Corp. posts surprise profit as cost cuts deepen

Amid a growing grudge in US oil and natgas industry which were being shelled lately with a cascade of consolidations, largely in part due to a double whammy of a multi-year low crude oil and natgas futures’ prices alongside a catastrophic demand crunch, the San Ramon, CA-headquartered American multinational oil industry titan, Chevron Co., had reported a surprise climb in quarterly profits over the third quarter of the year as a swathe of measures aimed at slashing expenses appeared to have rewarded Chevron Co.’s operational profits.

In point of fact, crude oil futures’ prices had been met with a raft of fundamental rancors this year including a price war over market share that had flooded the market and pushed the oil futures’ prices down to a negative figure for the first time in history in April this year, while a global-scale pandemic resurgence at large casted fresh doubts on crude futures prices’ recovery in a near-term outlook.

Chevron posts surprise Q3, 2020 profit

Over the narratives of such slandering oil market landscape, Chevron alongside a number of oil majors across the globe had been forced to slash expenses as crude oil prices were plunged as much as 40 per cent this year, while Chevron’s move to slash expenses which in turn had enabled the American multinational oil major to report a flabbergasting quarterly profit over Q3, 2020, had largely coincided with Royal Dutch Shell Plc.

and UK’s BP Plc., both of which had reported a spike in operational profit following deeper cost cuts this year. Meanwhile, according to the second-largest US crude oil producer’s quarterly earnings’ report for Q3, 2020, Chevron’s net earnings totalled to $201 million or 11 cents per share excluding one-time items compared to a profit of $2.9 billion or $1.55 per share at the same time a year earlier, however, Wall St.

analysts forecasted a loss of 27 cents for the quarter which in turn had led to an uptick in Chevron’s shares’ prices. Shares’ prices rose 1 per cent to $69.50 on Friday’s market wind down. Besides, adding that it was too soon to say whether the worst of the pandemic’s fiscal fallouts was over, Chevron Chief Executive Pierre Breber said earlier in the day, “The outlook for energy consumption depends on when the world - this country and other countries - get control of the pandemic and those activities resume. We don’t know when that’s going to be.