Chevron's profit sinks amid oil slump

The Associated Press

Chevron, which has been hurt by plunging oil prices, reported a loss in its fourth quarter and a nearly 40 percent drop in revenue from a year ago.

SAN RAMON, Calif. (AP) — Chevron, which has been hurt by plunging oil prices, reported a loss in its fourth quarter and a nearly 40 percent drop in revenue from a year ago.

Shares of Chevron Corp. fell more than 2 percent in midday trading Friday.

The oil and gas producer cut costs by $9 billion in 2015 from the year before and expects "large reductions" again in 2016, Chevron CEO John Watson said in a statement.

Several energy companies have reduced spending or cut jobs to deal with a drop in oil prices.

The company reported a loss of $588 million, or 31 cents per share, for the fourth quarter, compared with net income of $3.5 billion, or $1.85 per share, in the same quarter a year ago.

The San Ramon, California-based company does not adjust its reported results based on one-time events such as asset sales. The average estimate of 10 analysts surveyed by Zacks Investment Research was for adjusted earnings of 48 cents per share.

Revenue fell 37 percent to $29.25 billion in the period.

For the year, the company reported profit of $4.59 billion, or $2.45 per share. Revenue was reported as $138.48 billion.

Shares of Chevron Corp. fell $1.96, or 2.3 percent, to $83.96 in midday trading Friday.

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