Chevron Corp. posted a third-quarter 2020 net loss of $207 million, compared with earnings of $2.6 billion in third-quarter 2019. Included in the current quarter was a charge of $130 million attributable to a tax item related to an international upstream end-of-contract settlement and a non-cash provision of $90 million for remediation of a former mining asset. Foreign currency effects decreased earnings by $188 million.
Adjusted earnings of $201 million in the quarter compares to adjusted earnings of $2.9 billion in third-quarter 2019.
Sales and other operating revenues in third quarter 2020 were $24 billion, compared to $35 billion in the year-ago period.
Upstream
Worldwide net oil-equivalent production was 2.83 million b/d in the third quarter, a decrease of 7% from 1 year ago. The decrease was largely a result of curtailed production in response to low commodity prices and asset sales, partially offset by net production increases at a number of properties.
US upstream operations earned $116 million in the quarter, compared with $727 million a year earlier. The decrease was primarily due to lower crude oil realizations.
Net oil-equivalent production of 982,000 b/d in the third quarter was up 48,000 b/d from a year earlier. Production increases from shale and tight properties in the Permian basin were partially offset by normal field declines and planned maintenance in the Gulf of Mexico. The net liquids component of oil-equivalent production in the quarter increased 1% to 731,000 b/d, while net natural gas production increased 21% to 1.51 bcfd, compared to last year’s third quarter.
International upstream operations earned $119 million in the quarter, compared with $2 billion a year ago. The decrease was primarily due to lower crude oil and natural gas realizations, lower crude oil and natural gas sales volumes, and a tax item related to an end of contract settlement, partially offset by lower depreciation and operating expenses. Foreign currency effects had an unfavorable impact on earnings of $156 million between periods.
Net oil-equivalent production of 1.85 million b/d in third-quarter 2020 decreased 247,000 b/d from third-quarter 2019. The decrease was due to production curtailments associated with OPEC+ restrictions and market conditions combined with asset sale related decreases of 104,000 b/d. The net liquids component of oil-equivalent production decreased 12% to 976,000 b/d in the quarter, while net natural gas production of 5.26 bcfd decreased 12%, compared to last year’s third quarter.
Downstream
US downstream operations earned $141 million in the quarter, compared with $389 million a year earlier. The decrease was mainly due to lower sales volumes and lower margins on refined product sales, partially offset by lower operating expenses.
Refinery crude oil input in the quarter decreased 17% to 820,000 b/d from the year-ago period, as the company cut refinery runs in response to the weak refining margin environment.
Refined product sales of 1.00 million b/d were down 22% from third-quarter 2019, mainly due to lower jet fuel, gasoline, and diesel demand associated with the COVID-19 pandemic.
International downstream operations earned $151 million in the quarter, compared with $439 million a year earlier. The decrease in earnings was largely due to lower margins on refined product sales, partially offset by lower operating expenses. Foreign currency effects had an unfavorable impact on earnings of $76 million between periods.
Refinery crude oil input of 570,000 b/d in the quarter decreased 9% from the year-ago period, primarily due to the economic slowdowns in response to the COVID-19 pandemic.
Refined product sales of 1.28 million b/d in the quarter were down 6% from the year-ago period, mainly due to lower jet fuel demand associated with the COVID-19 pandemic, partially offset by higher diesel sales resulting from the second quarter 2020 acquisition of Puma Energy (Australia) Holdings Pty Ltd.