Chief executive John Watson said that after an aggressive response to the oil market conditions in 2016 Chevron is well positioned to improve earnings.
Financial results for the fourth quarter of 2016 show the US oil major earned US$415mln (US$0.22 per share), versus a US$588mln loss in the same period of the preceding year. Fourth quarter sales amounted to US$30bn.
It falls short of Wall Street expectations, consensus was for US$33bn of revenue and 64 cents per share.
Over the full year Chevron said it made a US$497mln loss (US$0.27 per share) compared to US$4.6bn of earnings in 2015.
In a statement, Watson said: “Our 2016 earnings reflect the low oil and gas prices we saw during the year.
“We responded aggressively to those conditions, cutting capital and operating expenses by $14 billion.
“We are well positioned to improve earnings and be cash flow balanced in 2017 through continued tight spending and cost control and additional revenue from expected production growth.
“That confidence enabled us to increase the 2016 annual dividend payout for the 29th consecutive year.”
Chevron fell US$3.50, 3.13%, to trade at US$113 per share.