Following their decision to cut approximately 6,000 jobs, Chevron surprised investors and analysts alike by posting an unexpected profit. While analysts expected a 27-cent loss per share during the third quarter, Chevron reported earnings of 11 cents per share.
In what has been a tumultuous period for Chevron, the multinational energy corporation made the critical decision to cut capital costs in order to cope with the drastic decrease in demand for crude oil. In addition to its widescale job cuts, Chevron has also allowed its production to drop.
In a conference call with investors, Chief Financial Officer Pierre Breber explained that Chevron is sacrificing its short-term production ambitions in order to secure its long term survival.
“We’re in an economy that’s impacted by its pandemic and demand for our products is below normal levels and pre-pandemic levels, and therefore we have oversupplied markets,” he explained.
Chevron was not the only big oil corporation that beat analysts’ forecasts, however. BP was able to avoid a predicted loss, while the Royal Dutch Shell Plc and Total SE also proved experts wrong with their latest results. While it may be down more than 40% this year, Chevron has surpassed its rival Exxon to become America’s largest oil company.
