Like all producers, Chevron faces a two-headed hydra of much lower global demand and increased oversupply that has forced oil prices down from $60/barrel recently to $20/barrel now.
Chevron's dividend is $5.16/share for a yield of 7.5%; it is cutting its capital budget to prioritize its dividend. The company's market capitalization is $129.3 billion.
Because of its good balance sheet, budgeting pivot, and international operations, Chevron is in better shape to withstand the oil price downturn than smaller, U.S.-only producers.
Were you following this:
Iraq proposes budget cuts to foreign oil firms after oil price crash - Reuters
BASRA, Iraq/ DUBAI (Reuters) - Iraq has sent a proposal to all international oil companies asking them to reduce the budgets of developing oilfields by 30% as the slump in oil prices has hit government revenues, but said the proposed cuts should not affect crude output, Iraqi oil officials and industry sources told Reuters.
International firms operate in Iraq’s southern oilfields under service contracts. Under the contracts, they are paid a fixed dollar fee for volumes produced and Baghdad repays companies for the cost of building projects and approve oilfields development plans.
COVID-19: Oil companies take budget cut to survive holocaust – The Sun Nigeria
Learn how to scale your business on a budget by outsourcing | Financial Post
Not to change the topic here:
Big Oil's interest in renewable energy investments expected to waver, report says - The Globe and
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Budget cutting in response to the twin challenges of COVID-19 demand destruction and low oil prices mean the world's oil and gas industry will likely spend less on renewable energy going forward.
But a report from consultancy Wood Mackenzie says that won't likely slow the overall investment in renewables – fossil fuel players really weren't putting much money into it anyway.
"In a US$60 per barrel oil price environment, most companies were generating strong cash flow and could afford to think about carbon mitigation strategies," said Valentina Kretzschmar, vice-president, corporate analysis, at Wood Mackenzie.
COVID-19: Budget Draws Praise, Fiji Rice Gives Help
Raj Sharma, chairman for Fiji Rice Limited, Copra Millers Fiji Limited and Food Processors Fiji Limited thanked the Minister for Economy and the Government for the supplementary budget and meeting priority needs of those affected.
He was speaking on behalf of Fiji Rice Limited, Food Processors Fiji Limited and Copra Mills Fiji Limited, "It is very timely and matter of urgency.
"We highly appreciate the debt to equity conversion for Food Processors Fiji Limited and Fiji Rice Limited."
5 Of The Best Cameras Based On Your Budget
Although every smartphone is equipped with high-quality cameras that seem to get better by the day, there are still plenty of reasons to buy standalone cameras in today's world.
For instance, in some cases, you might want to buy a camera, like a digital-SLR (SLR stands for single-lens reflex), when you want to take professional shots that even the most powerful of smartphone cameras have a hard time matching. In others, you might want to have a simple point-and-shoot camera you can bring along with you on trips. And in a surprising twist, old-style instant film cameras are making a major comeback.
Sunak faces pressure to support business over coronavirus crisis | Business | The Guardian
Tej Parikh, chief economist at the IoD, said: "Government must be at the ready to take swift action to help cash-strapped businesses bridge this challenging period. The upcoming budget also provides an opportune moment to lower business costs and support investment to amplify the post-outbreak recovery."
Firms facing financial distress should be given more time to pay VAT, payroll taxes and corporate tax, the IoD said, adding that HMRC's "time to pay" scheme - which offers firms more generous payment terms – should be expanded.
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