Chevron Corp. (CVX) Shares Turned Red on Unexpected Annual Loss

Chevron Corp. (NYSE:CVX) history dates back to 1879 when Pacific Coast Oil Company came into existence. Pacific Coast in 1900 merged with oil giant Standard Oil Co., which back then use to control nearly all the oil production and transportation across the U.S. Chevron expanded over the years by acquiring several companies such as Gulf Oil Corp in the 1980s, and Unocal Corp. in 2005. It is currently involved in almost all phases of the petroleum business ranging from exploration and production to refining and marketing.

The San Ramon, California-based energy giant recently reported disappointing quarterly results, as low operating margins, acquisitions costs, and negative impact of Covid-19 weighed on its revenue.

Oil prices stayed low for most of the year due to weak fuel demand as a result of travel restrictions imposed by governments around the world to limit the spread of the virus. Chevron tried to make up for the losses last year by slashing about 15 percent of its global workforce, reducing its oil production targets, and limiting new projects.

Nevertheless, the company reported an adjusted loss of $11 million, or 1 cent per share for the quarter, as compared to earnings of $1.49 per share in the comparable period of 2019. Contrarily, analysts on average were expecting Chevron to report a profit of 7 cents per share. Revenue for the quarter came in at $25.25 billion, missing the consensus forecast of $26.2 billion.

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Chevron reported a loss of $5.54 billion for 2020, as compared to earnings of $2.92 billion in the prior year. Chevron shares fell 4.29 percent to $85.20 in the previous trading session following the results. CVX share price has declined more than 22 percent during the past 12 months.