Chevron reports of fourth quarter showed a lackluster
performance for their fourth quarter. Their performance in terms of balance
sheet shows a relatively poor financial standing, hence a poor CVX stock price, as the firm’s net cash
position of $16.2 billion falls significantly short of its net debt position of
$20.4 billion, which as compared to last year’s $29 billion and $20.9 billion
respectively shows how much the firm has deteriorated in terms of financial
assessment and also the Chevron Corp. stock price.
As per CVX stock
analysis, much of this is because of the negative net cash flows for the
period, partly due to sharp fall in cash inflows of the company’s operations,
which brought only $35 billion inflows as compared to last year’s $38.8
billion, but chiefly because of the capital injections that overwhelmed the
inflows by shooting to a lavish $41.9 billion as compared to a much lower $34.2
billion last year.
CVX estimates
regarding budget show that 2014 is likely to see a similar picture, with
capital investments, although being curtailed, would still overcome the
positive cash inflows, which wouldn’t surprise most analysts to expect further
erosion in the financial position of the big oil company and a further
precipitation in their stock’s value post CVX
earnings release.
The obvious reasons for the fall in the CVX earnings are crashing revenue streams, which as a percentage
reflect a drop of 30% in upstream profits, which basically covers 90% revenue
stream, and whopping 57% in the downstream profits, as per Chevron Corp. stock analysis.
Chevron’s profitability has declined at 4% cumulatively, since the
2012’s first quarter, affecting Chevron
Corp. stock price.
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