Oil giant Chevron announced this morning that the company had lost about 207 million dollars in the third quarter of this year, or almost 30 billion Icelandic kronur. This is a significant turnaround from the same period last year when the profit was about 2.6 billion dollars.
Despite the large loss, it is slightly less than experts had expected. The price of the company’s shares has therefore risen by 3% before the opening of the markets. The biggest hit was the sharp decline in the company’s revenue, which contracted by 12 billion dollars. This can be attributed to the epidemic of coronary heart disease, but oil consumption has fallen sharply in recent months.
Lower prices and poorer margins
“The results of the third quarter are worse than at the same time last year. This is almost exclusively due to lower prices and lower margins due to the effects of the pandemic, “said the company’s CEO, Michael K. Wirth.
“The world economy is still struggling. It has also reduced the demand for our products. Oil is directly linked to the economy. ”