ABUJA (Sundiata Post) – Though foreign currency effects increased Chevron Corporation’s earnings in the 2016 fourth quarter by $26 million, compared with an increase of $46 million a year earlier, production increases from major capital projects and base business were offset by normal field declines, the impact of asset sales, production entitlement effects in several locations and the effects of civil unrest in Nigeria.
This is contained in the company’s report obtained by Sundiata Post. The company reported earnings of $415 million for fourth quarter 2016, compared with a loss of $588 million in the 2015 fourth quarter. Also, full-year 2016 results were a loss of $497 million compared with earnings of $4.6 billion in 2015. According to the report, “Net oil-equivalent production for the full year 2016 was 2.59 million barrels per day, a decrease of 1 percent from the prior year. Production increases from major capital projects, shale and tight properties, and base business were more than offset by normal field declines, the impact of asset sales, the partitioned zone shut-in, the effects of civil unrest in Nigeria and planned turnaround activity.”
It further explained that the average sales price for crude oil and natural gas liquids in fourth quarter 2016 was $44 per barrel, up from $39 a year earlier, while the average sales price of natural gas was $4.07 per thousand cubic feet, compared with $3.99 in last year’s fourth quarter. “Net oil-equivalent production of 1.99 million barrels per day in fourth quarter 2016 increased 33,000 barrels per day, or 2 percent, from a year ago. Production increases from major capital projects were partially offset by normal field declines, production entitlement effects in several locations and the effects of civil unrest in Nigeria,” it stated.
“Our 2016 earnings reflect the low oil and gas prices we saw during the year,” said Chairman and CEO John Watson. “We responded aggressively to those conditions, cutting capital and operating expenses by $14 billion. We are well positioned to improve earnings and be cash flow balanced in 2017 through continued tight spending and cost control and additional revenue from expected production growth. That confidence enabled us to increase the 2016 annual dividend payout for the 29th consecutive year.”
“We were able to reach noteworthy milestones in 2016 on major capital projects,” Watson added. “We achieved first gas and cargo shipments at our Gorgon Project in Australia, first gas at our Chuandongbei Project in China, and increased production from our Permian Basin shale and tight oil properties. In addition, we announced the final investment decision on the Future Growth and Wellhead Pressure Management Project at the company’s 50 percent owned affiliate, Tengizchevroil, in Kazakhstan.”
