Chevron reported a fourth-quarter loss Friday to conclude a rocky year for oil companies as the coronavirus battered demand for petroleum products.

The US oil giant, which trimmed staff and slashed capital spending to ride out the downturn, finished the year with a loss of $5.5 billion, compared with earnings of $2.9 billion in 2019.

Chevron lost $665 million in the quarter ending December 31, compared with a loss of $6.6 billion in the year-ago period following a large asset write-down.

US oil prices bottomed out in April 2020, when futures briefly went into negative territory amid a supply glut prompted by the sudden shutdown of much of the US economy.

Crude prices rose and stabilized later in the year, but demand remains weak for some products such as jet fuel.

“2020 was a year like no other,” said Chevron Chief Executive Mike Wirth. “When market conditions deteriorated, we swiftly reduced capital spending by 35 percent from 2019 and also reduced operating costs, demonstrating our commitment to capital and cost discipline.”

Revenues in the fourth quarter fell 30.5 percent to $25.2 billion.

For all of 2020, revenues fell 35.4 percent to $94.7 billion.

Shares fell 1.5 percent to $87.68 in pre-market trading.

Source: The Guardian