Chevron Corp. (NYSE:CVX) lowered its earning guidance for the third quarter Tuesday, citing the collapsing U.S. dollar and the deepwater oil moratorium imposed by the Obama administration which drove up the costs for the period. Lower crude prices were also cited as a reason for the lowered guidance.
Together it will slash earnings for the quarter by close to $400 million, said the energy giant.
This isn't a surprise to most people, as Wall Street had already lowered their profit estimates to $2.27, down from the second-quarter earnings of $2.70 a share.
Chevron noted the declining value of the U.S. dollar will hit their International Upstream business the hardest.
U.S. upstream earnings were the most negatively affected by the oil moratorium, resulting in a drop of 16,000 barrels of day in production on average in the country, while costs rose.
Chevron has been lowering their investment in small-margin businesses in order to target exploration to find new gas and oil fields.
The company closed Tuesday at $83.84, gaining $0.13, or 0.16 percent.
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