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Chevron Corp. said it would cut its annual capital spending budget by 26% next year and sharply through the middle of the decade, as the coronavirus pandemic forces industry-wide reassessment of investments in fossil fuels.
Chevron said it would spend $ 14 billion in 2021 and between $ 14 billion and $ 16 billion per year until 2025. It had previously said it would spend $ 19-22 billion per year until 2024 before pandemic, while returning up to $ 80 billion to shareholders. this period.
In October, Chevron told investors it would spend around $ 14 billion in 2021 and said its long-term budget could be cut as well.
The US oil giant’s cuts follow those announced this week by rival Exxon Mobil Corp., which on Monday said it would cut annual capital spending by around $ 5 billion to $ 10 billion a year through 2025. Exxon, which lost more than $ 2.3. billion in the first three quarters of this year, also said it would reduce the book value of its assets by up to $ 20 billion.
Chevron has lost nearly $ 5 billion this year, but unlike Exxon, it has managed to avoid incurring large amounts of new debt due to a relatively strong balance sheet. The company’s stock price has fallen about 5% in the past six months and closed at $ 89.87 on Wednesday.
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