A peep into the company’s financials reveal that sales and other operating revenues in first quarter 2016 were $23 billion, compared to $32 billion in the year-ago period.
John Watson, Chairman and CEO of the company revealed that the first quarter results declined from a year ago.
According to Watson “Our upstream business was impacted by a more than 35 percent decline in crude oil prices. Our downstream operations continued to perform well, although overall industry conditions and margins this quarter were weaker than a year ago. Our efforts are focused on improving free cash flow. We are controlling our spend and getting key projects under construction online, which will boost revenues.
“We announced first LNG production and first cargo shipment from Train 1 at the Gorgon Project in March. Production from the Angola LNG plant is imminent and a cargo shipment is expected in May. Earlier in the year, we started up production at the Chuandongbei Project in China, and we continue to ramp up production in the Permian Basin and elsewhere. We continue to lower our cost structure with better pricing, work flow efficiencies and matching our organizational size to expected future activity levels. Our capital spending is coming down. We are moving our focus to high-return, shorter-cycle projects and pacing longer-cycle investments.”
Net charges in first quarter 2016 were $1 million, compared with $416 million in the year ago period. The change between periods was mainly due to lower corporate tax items.
Cash flow from operations in first quarter 2016 was $1.1 billion, compared with $2.3 billion in the corresponding 2015 period. Excluding working capital effects, cash flow from operations in first quarter 2016 was $2.1 billion, compared with $4.3 billion in the corresponding 2015 period.
Capital and exploratory expenditures in first quarter 2016 were $6.5 billion, compared with $8.6 billion in the corresponding 2015 period. The amounts included $791 million in first quarter 2016 and $730 million in the corresponding 2015 period for the company’s share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream represented 92 percent of the companywide total in first quarter 2016.