The company reported $2bn earnings for third quarter this year, down from the $5.6bn reported in the third quarter of 2014.
Additionally, the company’s sales and other operating revenues were $33bn in third quarter, compared to $52bn in the corresponding 2014 period.
Chevron chairman and CEO John Watson said: "Third quarter earnings were down substantially from a year ago.
"While downstream earnings remained strong, lower overall earnings reflected weaker market prices for both crude oil and natural gas, which depressed upstream profitability.
"We are focused on improving results by changing outcomes within our control. Operating and administrative expenses are 7% lower than last year, and we expect further reductions in the quarters ahead."
Chevron plans to reduce capital and exploratory expenditures – by about 25% lower than 2015 budget, to $25-28bn in 2016.
A further reduction is also expected to make by the company – $20bn to $24bn range, for 2017 and 2018, based on business conditions.
Watson said that the firm would continue to move ahead with asset sales program.
The company, which generated $11bn in proceeds in the last two years, expects to add additional proceeds of $5-10bn by the end of 2017.
In July 2015, Chevron announced its plan to cut around 1,500 jobs in order to reduce costs by around $1bn and offset impact of the declining crude prices.
This plan, which was intended to reduce internal costs in multiple operating units and the corporate center, was expected to affect jobs across its Texas and California operations.
Image: Headquarters of Chevron Corporation in San Ramon, California, US. Photo: courtesy of Coolcaesar / Wikipedia.
