Chevron plans on cutting up to 7000 jobs

Now according to Exxon Mobil’s estimates, it has not only been able to balance its cash flows, but the company has also said that so far, it has generated $7.4 billion free cash flow.

United States oil giant Chevron said Friday it was going to cut between 6,000 and 7,000 jobs and continue with asset sales as the company retrenches amid sharply lower oil prices. Chevron has seen a loss in profits as a result, dropping 64 percent in the third quarter.

The Irving, Texas, company reported a profit of $4.24 billion, or $1.01 a share, down from $8.07 billion, or $1.89 a share, a year earlier.

What’s more, losses on the production front were aggravated by the sharp downfall in oil prices, the net effect resulting in a 99% year-over-year decline in upstream earnings to a paltry $59 million.

The company said it was expecting to slash its spending again in both 2017 and 2018 by between $20 billion and $25 billion. The ratio dived, as 89 funds sold all Exxon Mobil Corporation shares owned while 849 reduced positions. Still, with fatter profits from its fuel refineries that doubled to $US2.03 billion, Exxon managed to beat Wall Street expectations.

Exxon Mobil Corporation(NYSE:XOM) gained 0.74% in the past session as it closed at $82.84 on when approximately 18.76 million shares were traded, against the average daily trading volume of 14.69 million.

Shell reported $7.9 billion in charges, including $2.6 billion for its decision to abandon Arctic drilling off Alaska and $2 billion related to the decision to cancel the Carmon Creek project. The earnings report after that one will be on February 1, 2016, and the report for the fiscal year will be made available on February 1, 2016. The company’s total production increased by 2.3% from a year ago to 3.918 million boe per day, thanks to higher oil output from North America, Indonesia and Africa.

Higher margins on sales of refined products increased USA downstream earnings by 54%, to $1.2 billion. Revenue declined by nearly a third to €18.81 billion. The average price for natural gas was $1.96 per thousand cubic feet, down from $3.46.

But the optimism about the future prospects for America’s second-biggest oil company came just before crude-oil prices crashed by 60 percent and natural gas prices crashed by 40 percent. The proceeds of which will be used for its exploration and production business and to shore up its balance sheet. It is slashing costs as it prepares for a long-term low oil price environment. California’s average price for a gallon of regular stood at $2.83 Friday, 65 cents higher than the national average, according to GasBuddy.com. In March, Chevron announced plans to sell off $15 billion of its assets through 2017 in order to boost dividends. So far this year Exxon has spent $190 billion, approximately two thirds what it had spent by the same time a year ago.