Chevron Corporation last Friday reported a loss of $588 million for the fourth quarter 2015, compared with earnings of $3.5 billion in the 2014 fourth quarter. Foreign currency effects increased earnings in the 2015 quarter by $46 million, compared with an increase of $432 million a year earlier.
Full-year 2015 earnings were $4.6 billion compared with $19.2 billion in 2014.
Sales and other operating revenues in fourth quarter 2015 were $28 billion, compared to $42 billion in the year-ago period.
U.S. upstream operations incurred a loss of $1.95 billion in fourth quarter 2015 compared to earnings of $432 million from a year earlier. International upstream operations earned $593 million in fourth quarter 2015 compared with $2.24 billion a year earlier.
U.S. downstream operations earned $496 million in fourth quarter 2015 compared with earnings of $889 million a year earlier. International downstream operations earned $515 million in fourth quarter 2015 compared with $629 million a year earlier.
Cash flow from operations in 2015 was $19.5 billion, compared with $31.5 billion in 2014. Excluding working capital effects, cash flow from operations in 2015 was $21.4 billion, compared with $32.0 billion in 2014.
Were taking significant action to improve earnings and cash flow in this low price environment, said Chairman and CEO John Watson. Operating expenses and capital spending were reduced $9 billion in 2015 from 2014, and I expect similarly large reductions again in 2016. In addition, asset sales proceeds were $6 billion in 2015, with additional sales planned for 2016 and 2017.
Meanwhile, refiner and marketer Phillips 66 last Friday announced fourth-quarter earnings of $650 million, compared with earnings of $1,578 million in the third quarter of 2015. Adjusted earnings, excluding special items of $60 million, were $710 million.
Marketing and Specialties (M&S) fourth-quarter adjusted earnings were $227 million, compared with $344 million in the third quarter. Adjusted earnings for Marketing and Other were $198 million, a decrease of $93 million from the prior quarter. Refined product exports in the fourth quarter were 127,000 barrels per day (BPD), compared with 118,000 BPD in the prior quarter. Phillips 66s Specialties businesses generated adjusted earnings of $29 million during the fourth quarter. The $24 million decrease from the prior quarter was mainly due to reduced base oil margins, as well as lower finished lubricants margins and volumes.
Refining adjusted earnings were $376 million in the fourth quarter, compared with $1,052 million in the third quarter.
The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Fourth-quarter Chemicals adjusted earnings were $182 million, compared with adjusted earnings of $272 million in the third quarter. During the fourth quarter, CPChem's Olefins and Polyolefins business contributed $181 million to Phillips 66's Chemicals earnings. This was a decrease of $80 million compared with the prior quarter largely due to reduced margins, as well as decreased equity earnings.
Phillips 66's Midstream fourth-quarter adjusted earnings were $42 million, a decrease of $49 million from the third quarter.
Other major integrated oil companies, including ExxonMobil, BP and Shell are scheduled to report fourth quarter earnings later this week.
