By Allison Prang
Chevron Corp. said it was lowering its capital spending outlook by another $2 billion and said it expects a $1 billion drop in operating expenses this year.
Chevron, which recently cut its capital spending by 20%, is now guiding for $14 billion in capital expenditures for 2020.
The oil company, like the rest of the energy business, has had to grapple with a dive in the price of crude in the first quarter, which fell to around $20 a barrel at quarter's end, down more than $40 from three months earlier, according to Dow Jones Market Data.
Oil companies have been sandwiched between two major headwinds: The industry has been producing too much oil and is doing so during a time when consumers aren't needing as much gas to travel by car or plane because of the Covid-19 pandemic.
Chevron said Friday that "financial results in future periods are expected to be depressed as long as current market conditions persist."
The oil company's net income was $3.6 billion, rising 36% from a year earlier. Chevron's earnings broke out to $1.93 a share, up from $1.39 a share a year ago and more than analysts' consensus from FactSet of 63 cents a share.
Revenue was $31.5 billion, topping the analyst consensus of $29.14 billion, but slipping 11% from a year ago.
Production was 3.24 million barrels of oil-equivalent a day, the company said. That rose from 3.04 million a day a year earlier. Analysts expected 2.77 million.
(END) Dow Jones Newswires
May 01, 2020 07:52 ET (11:52 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.