Monday 30 March 2020

Chevron announces measures to protect against coronavirus

Chevron has announced multiple cuts across portfolios in response to the coronavirus pandemic.

The integrated energy company is reducing its guidance for 2020 organic capital and exploratory spending by 20%.

It will further reduce spending by $700 million (£590m) on upstream projects and exploration and $2 billion (£1.6bn) in upstream unconventional markets.

Amid a decline in commodity prices, cash capital and exploratory expenditures are expected to fall by $3.3 billion (£2.7bn).

Chevron Chief Financial Officer Pierre Breber, said: “Chevron’s financial priorities remain unchanged. Our focus is on protecting the dividend, prioritizing capital that drives long-term value, and supporting the balance sheet.”

The company has confirmed the suspension of share repurchases and has taken actions to protect the dividend.