Chevron Corp. said quarterly profit dropped to the lowest in half a decade as collapsing global crude markets spurred billions of dollars in oil-industry spending cuts.
The second-biggest U.S. energy company by market value said its capital spending budget would be US$35-billion this year, 13% less than 2014.
Chevron Corp, the second-largest oil company in the United States, said on Wednesday it expected first-quarter income to slip because of high currency conversion costs and environmental charges in its mining unit.
Output from the company’s oil and natural wells fell because of bitterly cold weather throughout the United States, Canada and Kazakhstan.
The company, which operates in about 180 countries, expects foreign currency exchange charges of $100 million for the first quarter.
U.S.energy behemoth Chevron Corp. (CVX) released its fourth-quarter 2010 interim update, covering the first 2 months of the quarter. On the whole, the update is on the bullish side, with earnings expected to be higher than the previous quarter.
The Dow and S&P 500 were dragged down on Friday by weak earnings from oil producers Exxon Mobil and Chevron, while the Nasdaq edged up after Amgen's profit beat expectations. Exxon Mobil shares fell 4 per cent to $79.52 while Chevron was down 4.2 per cent at $89.06 after quarterly profits slumped on falling oil prices. Amgen rose 4.7 per cent to $179.64 after the world's largest biotechnology company reported higher-than-expected second-quarter results.