Chevron posts first loss since 2002 on crude oil plunge

Jan 29 Chevron Corp reported its first quarterly loss in more than 13 years on Friday despite Wall Street's expectations for a profit, as plunging oil prices eroded profitability across all its divisions.

It was the latest sign that the more than 70 percent drop in crude prices since 2014 has humbled a once-strong energy sector and forced it to curtail new projects, lay off staff and shrink spending.

Chevron, the No. 2 U.S. oil producer, last month signaled its pain by cutting its 2016 budget by 24 percent to $26.6 billion, part of a strategy to contend with lower oil prices and hunker down for a hoped-for price rebound.

Smaller rivals Hess Corp, Continental Resources and Noble Energy cut their own budgets early this week, ranging from 40 percent to 66 percent.

"We're taking significant action to improve earnings and cash flow in this low price environment," John Watson, Chevron's chief executive, said in a press release.

The company posted a fourth-quarter net loss of $588 million, or 31 cents per share, compared with a net profit of $3.47 billion, or $1.85 per share, in the year-ago period.

The last time Chevron posted a quarterly loss was the third quarter of 2002.

Analysts at Wells Fargo had expected the San Ramon, California-based company to report a profit of 45 cents per share, while analysts at Barclays had expected a profit of 32 cents a share.

Wells Fargo analyst Roger Read attributed the miss to higher exploration expenses and weak operating results in the company's U.S. exploration and production unit.

The bulk of Chevron's losses came from its divisions that explore for and produce oil and natural gas, with its U.S. division alone posting a loss of $1.95 billion.

Surprisingly, Chevron's refining divisions also saw profit plunge. Refiners typically see profitability increase when the price of their main feedstock - oil - falls. Chevron said the drop was due to a boost in the prior year from asset sales, and also smaller margins on specialty refined products.

Production rose 4 percent to 2.67 million barrels of oil equivalent per day in the quarter ended Dec. 31.

Shares of Chevron have slid about 5 percent so far this year through the Thursday close of $85.92 per share. On Friday, the stock traded 1.5 percent lower at $84.62. (Reporting by Ernest Scheyder Editing by W Simon)

Seems that one of Petronas VDP vendor for flow assurance product sudah mahu tutup kedai. TPPA liberation perhaps?

http://www.cnbc.com/2016/01/29/these-energ...ow-on-cash.html

91% fall.. OMG that's deep cut

It's all like one big nightmare that you can't wake up from

This year is going to be like a competition to see who can hold their breath the longest. The smallish companies are going to get gobbled up really fast.

I just hope there's some kind of production cut from OPEC.

I doubt they'll cut unless your rates are really high. But lubes is riding on the low crude price wave now anyways, they'll just pressure you abit on the rates haha.

Procurement Engineer position opps

This post has been edited by MEngineer: Feb 2 2016, 08:08 PM

That's a very sobering look at the state of the oil and gas today. I'm surprised XOM has so little cash for a company of its size.

Very thankful that I still have a job, despite working for a company with negative cashflow

Exxon's profit tumbles 58 percent, slashes capex by one-quarter

(Reuters) - Exxon Mobil Corp (XOM.N) on Tuesday reported its smallest quarterly profit in more than a decade and said it will cut 2015 spending by one-quarter and suspend share repurchases as it copes with a prolonged downturn in crude prices.

Shares of Exxon, the world's largest publicly traded oil company, fell 2.2 percent in premarket trading to $74.59, hit by a more than 4 percent slide in the price of crude oil.

Crude oil prices have dropped about 70 percent from the 2014 high over $100 barrel. Current prices at around $30 barrel have triggered a wave of spending cuts as oil companies slash investment in new wells and projects to conserve cash.

Exxon sees capital spending at around $23.2 billion this year, a 25 percent drop from 2015.

“While our financial results reflect the challenging environment, we remain focused on the business fundamentals, including project execution and effective cost management,” Rex Tillerson, the chairman and chief executive officer, said in a statement.

In another move to conserve cash, Exxon suspended its share buyback plan in the first quarter. In the fourth quarter, Exxon purchased 9.4 million shares for $754 million.

Oil analyst Brian Youngberg at Edward Jones in St. Louis characterized Exxon's report as "relatively good, especially when compared with BP's terrible results." He noted that Exxon's oil and gas output was better than expected and that the company had improved its operations this year.

Earlier Tuesday, BP Plc (BP.N) reported an annual loss of $6.5 billion, its largest ever. Smaller U.S. rival Chevron Corp (CVX.N) last Friday also reported a net loss.

Irving, Texas-based Exxon reported that fourth-quarter profit tumbled to $2.78 billion, or 67 cents per share, from $6.57 billion, or $1.56 per share, in the same period a year earlier. The 2015 fourth-quarter profit was the smallest since September 2002.

Analysts, on average, expected Exxon to earn 63 cents per share, according to Thomson Reuters I/B/E/S.

Exxon said its oil and gas output rose 4.8 percent in the fourth quarter as it pumped more crude oil.

Do you know how the new TPPA impacts the way Oil & Gas business will operate in Malaysia? still finding the guides to read.

The one I read is those from Wikileaks source. I am awaiting for another version which debated and passed by Dewan Rakyat recently. Two side of coins is better for sound judgement hehe.

Guys, McDermott is still seriously recruiting especially for HR, Finance, Legal, Marine, Engineering, Project Control, Cost & Contract, Supply Chain, HSE etc peoples needed. New APAC team is to be setup this March as SG office to be closed soon. Experienced personnel needed.

Send your CV to Jacqueline at jlaing@mphglobal.net or Pieter Brink at pbrink@mphglobal.net / pbrink@contractor-mcdermott.com or apply directly at McDermott website.

Its direct-hire, yearly renewal basis so your payroll is not under agency. So make sure to activate your dormant "enterprise entity" and pay your fees to SSM hehehehe

You can refer to the Cost Benefit Analysis report by PWC that can be downloaded from MITI's website. Pages 93-112 specifically discusses the potential economic impact of TPPA to the oil and gas sector in Malaysia.

http://fta.miti.gov.my/miti-fta/resources/...(corrected).pdf

INTERNATIONAL OFFSHORE OPPORTUNITIES
Malaysian Nationality Only

A Singapore, Russia, Norway and Caribbean based company providing agency and integrated services to Oil & Gas industry in relation to Exploration and Production activities. Now the company is looking for qualified candidates for Offshore Position

http://www.amrecindo.com/goljobs

amin@amrecindo.co.id / amin@amrecindo.com

This post has been edited by mohdyakup: Feb 3 2016, 10:19 AM

memerlukan pencerahan dari incik on this..

Same here. Have only heard bits and pieces about this but would like to learn more from all the experts . Please PM me if you're feeling generous

Contract basis on Direct hire not under the specific agency.

No i mean learn more on the "enterprise entity" part

Bro Yakup mean PO staff kot.

Yup its PO/SO based.

It depend on your employer. If they required you to register yourself to SSM (hence the terminology "enterprise entity") or via third party payroll agency - which both need you to submit monthly invoicing to your employer, validated against your verified timesheet.

Definitely save a lot with the enterprise entity especially on income tax part, however do aware on SSM and Company Act regulation, if you falsifying your annual company statement - LHDN definitely will chase you hehe. There are many loopholes anyway to evade tax on company/enterprise part, so be friendly with your Finance fags hehe

SSM these days are strict on dormant company/enterprise - afraid that you will become proxy for money laundering LOL