Chevron Expects Drop In 1QFY14 Profits

Discussion in 'Stock Market Forum' started by PaulSchinider, Apr 10, 2014.

  1. PaulSchinider

    PaulSchinider Well-Known Member

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    Chevron foresees a decline in profits due to exchange rate fluctuations, asset impairment charges, and a fall in production from upstream and downstream segments

    Chevron Corporation (CVX) provided an interim update for the first quarter of its fiscal 2014 (1QFY14; ended March 31, 2014) after markets closed yesterday. The second-largest oil company in the US based on market value – trailing Exxon Mobil Corporation (XOM) – expects its first quarter earnings to be lower than its earnings in 4QFY13, primarily due to unfavorable foreign currency exchange rates and environmental charges related to its mining unit. In after-hours trading yesterday, the stock price declined 0.54% to $118.46.

    The San Ramon, California-based company expects to record negative foreign currency charges of $100 million for the quarter. During 4QFY13, Chevron reported a positive foreign currency impact of $200 million. It also intends to record $400-500 million as asset impairment costs, most of which would be related to its mining operations.

    Chevron also provided an update on its production from its upstream and downstream segments for the first two months of its first quarter, and compared it to the previous four quarters’ performance.
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

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    ouch. But I guess that with such a large company there won't be a large drop because of this. Just one bad quarter, and most of these troubles seem to be ones with only a short lasting effect.
     
  3. wanderingwildman

    wanderingwildman Well-Known Member

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    I agree crimsongghost. I don't expect these problems to continue. We are always going to be in need of oil. I think the price will fluctuate over time. But, I don't think it would be worth dumping or any drastic measures like that.
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'm big on energy - especially oil and gas somewhat as well. I was big into this one in the past, but I've gotten away from it so much in the last year or so. I'm more into the smaller and growing (but of course riskier) up and comers these days.
     
  5. PaulSchinider

    PaulSchinider Well-Known Member

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    Chevron intends to record $400-500 million as asset impairment costs, most of which would be related to its mining operations.
     
  6. PaulSchinider

    PaulSchinider Well-Known Member

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    No One Knows where market is stand every day is a different up downing in Stock market :) so hope for best
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    CLR is currently my largest energy holding. There are a number of others I have smaller positons in that I'm also bullish on these days.
     

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