Chevron Corp. (CVX) Thursday said it expects earnings for the first quarter 2009 to be sharply lower than in the fourth quarter 2008. Upstream earnings are expected to decline substantially, in part due to lower prices for crude oil and natural gas. Downstream earnings are also anticipated to be much lower than in the previous period, with average margins on the sale of refined products off significantly.
U.S. upstream results in the first quarter are expected to include charges of approximately $100 million for write-offs mainly associated with exploration activities, while the fourth quarter included a gain of approximately $600 million from an asset-exchange transaction.
Further, the company's general guidance for the quarterly net after-tax charges related to corporate and other activities is between $250 million and $350 million.
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