Chevron’s profit tumbles by 90 per cent

Second quarter profit at oil producer Chevron Corp on Friday tumbled 90 per cent, missing analysts’ expectations, amid weakness in oil prices.

John Watson, the company’s chief executive, said the results were “weak” and that he was working to slash costs by renegotiating supply contracts.

Earlier in the week, he laid off two per cent of the company’s staff.

“Multiple efforts to improve future earnings and cash flows are underway,” Watson said in a statement on Friday.

Chevron earned a net income of $571 million, or 30 cents a share, compared with $5.67 billion, or $2.98 per share, a year earlier.

Excluding one-time items, Chevron earned 97 cents a share.

By that measure, analysts expected earnings of $1.16 per share. Shares fell two per cent to $91.25 in premarket trading on Friday.