Chevron issues profit warning

Chevron Corporation today reported in its interim update that earnings for the first quarter 2014 are expected to be lower than fourth quarter 2013, principally as a result of adverse foreign exchange effects, and selected asset impairments and related charges.

Absent these impacts, first quarter 2014 earnings are expected to be comparable with the prior quarter’s results. The interim update contains industry and company operating data for the first two months of the first quarter. Readers are advised that the commentary below compares results for the first two months of the first quarter 2014 to full fourth quarter 2013 results, unless indicated otherwise.

Upstream

Current year production has been affected by downtime, in part due to adverse weather across multiple regions including Kazakhstan, Canada, and the U.S. However, higher demand in Thailand and increased production at the LNG facility in Angola have served as an offset.

Downstream

U.S. refinery crude-input volumes were down slightly compared to the fourth quarter. International refinery crude-input volumes declined, primarily reflecting increased maintenance activities at multiple refineries.