Oil giant Chevron has sounded a warning over its first quarter profits after winter storms across North America hit its output.
The company warned that first quarter earnings for the start of 2014 are set to be lower than the end of 2013, as impairments and exchange rates hit earnings.
Harsh weather conditions across the US and Canada saw net oil and gas production dip, while both American and international refinery volumes dropped due to maintenance issues.
Chevron said it pumped the equivalent of 2.579 million barrels of oil a day during January and February – leaving it on track for its lowest first quarter production in eight years. That compares with 2.645 million in the first three months of 2013.
The firm is accelerating oil exploration from Argentina to China to add reserves and revive output.
Chairman and Chief Executive Officer John Watson is spending almost $40 billion this year to find, extract, transport and process oil and gas. Watson’s strategy also calls for auctioning off $10 billion in oilfields and other assets to hone the San Ramon, California- based company’s focus on the highest-profit projects.
Chevron is scheduled to disclose results for the entire three-month period on May 2.
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