NEW YORK (dpa) – Falling oil prices eroded profits by 28 per cent for Chevron to 3.5 billion dollars in the fourth quarter of 2014 compared to the same period in 2013, the company said Friday.
Sales and other operating revenues in the quarter were 42 billion dollars, compared to 54 billion dollars in the year before.
Full-year earnings for 2014 were 19.2 billion dollars, compared with 21.4 billion dollars in all of 2013.
Chevron, the second largest US energy producer, has cut back on investment plans to 35 billion dollars for 2015, or 13 per cent less than in 2014.
“Our 2014 earnings were down from the previous year, largely due to the sharp decline in crude oil prices,” said chairman and chief executive John Watson. “Improved downstream results and higher gains on asset sales related to our divestment programme partially offset the effect of lower crude prices.”
Oil prices have fallen from above 110 dollars per barrel in June to about 44 dollars per barrel this week because of increasing production of US shale oil and sluggish global economic growth.
In November, the Organization of Petroleum Exporting Countries (OPEC) decided against reducing production, a decision that Venezuela, Iran, Iraq and several other members opposed.