Occidental Petroleum CEO Ray Irani said record production and high gas and oil prices led to the company’s second best year ever in 2003. Occidental reported a 54% increase in net income to $1.5 billion and a 51% increase in earning per share to $3.93 for the year. Fourth quarter net income rose 19% to $382 million and earning per share rose 16% to 97 cents.

“Our core earnings for the year of $1.635 billion were the highest in the company’s history,” Irani said. “We ended the year with our debt to capitalization ratio at 37%, the lowest level in more than two decades.”

However, the company’s natural gas production fell both for the year and the quarter. Fourth quarter domestic gas production dropped 2.4% to 525 MMcf/d. For the year, domestic gas production was down 5.7% to 532 MMcf/d. Domestic crude oil and liquids production rose 13.4% for the quarter to 263,000 bbl/d and 10.3% for the year to 256,000 bbl/d.

Oil and gas segment earnings were much higher in the fourth quarter, $640 million compared with $490 million for the fourth quarter 2002, because of higher worldwide crude oil and gas prices, increased oil sales, lower exploration expenses and a $38 million refund of property taxes, partially offset by higher production costs, the company said. The increased crude oil production results largely from higher Ecuador and Horn Mountain production.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.