Chevron swings to quarterly loss on $10.4 billion impairment charge
The company also booked a gain of $1.2 billion in the quarter on the sale of its UK Central North Sea assets
Chevron Corp on Friday posted a fourth-quarter loss as the oil major booked an impairment charge of $10.4 billion related largely to a deepwater Gulf of Mexico project, shale gas assets in Appalachia and the Kitmat LNG project in Canada.
The company had in December warned of up to $11 billion in asset writedowns and said it was considering the sale of its stake in the Appalachian shale and in the proposed Kitmat project.
Net loss attributable to Chevron was $6.61 billion, or $3.51 per share, in the three months ended Dec. 31, compared with a profit of $3.73 billion, or $1.95 per share, a year earlier.
The company also booked a gain of $1.2 billion in the quarter on the sale of its UK Central North Sea assets.
Chevron's net oil equivalent production was flat at 3.08 million barrels per day in the quarter, while average sales prices fell in the United States and internationally.