Chevron Corporation (NYSE: CVX) reported a loss of $588 million, or $0.31 per share, for the fourth quarter of 2015, compared with earnings of $3.5 billion, or $1.85 per share, in the 2014 fourth quarter.

Full-year 2015 earnings of the San Ramon, CA-based energy company were $4.6 billion ($2.45 per share), compared with $19.2 billion ($10.14 per share) in 2014. Sales and other operating revenues in the fourth quarter of 2015 were $28 billion, compared to $42 billion in the year-ago period. For the full year, the figure was $129.9 billion, compared to $200.5 billion the prior year.

Foreign currency effects increased earnings in the latest quarter by $46 million, compared with an increase of $432 million a year earlier.

“Our 2015 earnings were down significantly from the previous year, reflecting a nearly 50% year-on-year decline in crude oil prices,” said Chairman and CEO John Watson. “We’re taking significant action to improve earnings and cash flow in this low price environment,” he added.

“Operating expenses and capital spending were reduced $9 billion in 2015 from 2014, and I expect similarly large reductions again in 2016. In addition, asset sales proceeds were $6 billion in 2015, with additional sales planned for 2016 and 2017,” Watson said. “We continued to reshape the downstream portfolio with well-timed asset sales and good progress on petrochemical investments.”

Worldwide net oil-equivalent production was 2.67 million barrels per day in fourth quarter 2015, up from 2.58 million barrels per day in the 2014 fourth quarter. Net oil-equivalent production for the full year 2015 was 2.62 million barrels per day, an increase of 2% from the prior year.

U.S. upstream operations incurred a loss of $1.95 billion in Q4 2015 compared to earnings of $432 million a year earlier. The decrease was due to lower crude oil realizations, higher depreciation expenses, higher exploration expenses and lower gains on asset sales, partially offset by higher crude oil production.

The company’s average sales price per barrel of crude oil and natural gas liquids was $35 in Q4 2015, down from $66 a year ago. The average sales price of natural gas was $1.54 per thousand cubic feet, compared with $3.34 in last year’s fourth quarter.

Net oil-equivalent production of 719,000 barrels per day in fourth quarter 2015 was up 46,000 barrels per day or 7% from a year earlier.

Production increases due to project ramp-ups in the Gulf of Mexico and the Permian Basin in Texas and New Mexico were partially offset by normal field declines and the effect of asset sales.

The net liquids component of oil equivalent production increased 8% in the 2015 fourth quarter to 499,000 barrels per day, while net natural gas production increased 4% to 1.32 billion cubic feet per day.

International upstream operations earned $593 million in fourth quarter 2015 compared with $2.24 billion a year earlier. The decrease was due to lower crude oil and natural gas realizations, and lower gains on asset sales.

Foreign currency effects increased earnings by $91 million in the 2015 quarter, compared with an increase of $453 million a year earlier.

The average sales price for crude oil and natural gas liquids in the fourth quarter of 2015 was $39 per barrel, down from $68 a year earlier. The average price of natural gas was $3.99 per thousand cubic feet, compared with $5.38 in last year’s fourth quarter.

Net oil-equivalent production of 1.95 million barrels per day in fourth quarter 2015 increased 45,000 barrels per day, or 2%, from a year ago.

U.S. downstream operations earned $496 million in Q4 2015, compared with earnings of $889 million a year earlier. The decrease was primarily due to the absence of 2014 gains on asset sales, partially offset by higher margins on refined product sales in fourth quarter 2015 compared to the year-ago period.

Refinery crude oil input in fourth quarter 2015 decreased 1% to 916,000 barrels per day from the year-ago period. Refined product sales of 1.23 million barrels per day were unchanged from fourth quarter 2014.

International downstream operations earned $515 million in fourth quarter 2015 compared with $629 million a year earlier. The decrease was primarily due to an unfavorable change in effects on derivative instruments and lower margins on refined product sales, partially offset by the absence of certain one-time employee benefits expenses in the year-ago period and lower income tax expense.

Foreign currency effects decreased earnings by $45 million in fourth quarter 2015, compared with a decrease of $21 million a year earlier.