California-based major oil company, Chevron, has reported a loss of $588 million in its 2015 fourth quarter report. The company also disclosed that it expects continuous decline in its operating expenses and capital spending in 2016. The report revealed that the oil company’s production fell by four per cent to 2.67 million barrels of oil-equivalent daily in the same period. Chevron made a net profit of $3.47 billion in the previous year, the report also showed that revenue also fell by 39 per cent, to $29.2 billion.
The company’s Chief Executive Officer, CEO John Watson said that, “compared with $40.3 billion in 2014, the company recorded capital and exploratory expenditures of $34 billion in 2015.” The Oil major is however, making efforts to increase revenue in the year ahead. “We’re taking significant action to improve earnings and cash flow in this low price environment,” Watson said, adding that, “Operating expenses and capital spending were reduced to $9 billion in 2015 from 2014, and I expect similarly large reductions again in 2016. In addition, asset sales proceeds were $6 billion in 2015, with additional sales planned for 2016 and 2017.”