Chevron shares close higher on Friday, oil major’s Nigerian unit to reduce local workforce by 25%

Chevron Corp’s (CVX) division in Nigeria said over the weekend that it intended to reduce local workforce by 25%, as it seeks to cut costs amid weak global demand for oil.

Last month the International Energy Agency revised down its full-year projection on oil demand internationally.

Chevron shares closed higher for the fourth time in the past ten trading sessions in New York on Friday. The stock went up 1.09% ($0.77) to $71.19, after touching an intraday low at $68.82, or a price level not seen since April 1st ($67.61).

Shares of Chevron Corp have retreated 40.93% so far in 2020 compared with a 3.64% gain for the benchmark index, S&P 500 (SPX).

In 2019, Chevron Corp’s stock went up 10.77%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

Chevron did not disclose the number of affected jobs, but however, it noted the reductions would affect employees across its operations.

The company also said it did not plan to relocate jobs abroad, while affected employees will be able to keep their jobs until the reorganization is finalized.

Chevron Corp operates a joint venture with the state-owned Nigerian National Petroleum Corporation in the African country.

Analyst stock price forecast and recommendation

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Chevron Corp’s stock price, have a median target of $98.00, with a high estimate of $121.00 and a low estimate of $70.00. The median estimate represents a 37.66% upside compared to the closing price of $71.19 on October 2nd.

The same media also reported that at least 15 out of 26 surveyed investment analysts had rated Chevron Corp’s stock as “Buy”, while 8 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.