Occidental Petroleum beat analysts’ third quarter earningsexpectations by a solid 10 cents/share. Higher gas and oil pricesand improved performance from its chemicals division produced netincome of $126 million ($0.35/share) for the third quarter, 232%higher than the $38 million ($0.10/share) posted in 3Q98. Earningsbefore special items were $125 million compared with only $3million in 3Q98.
“Oil and gas margins improved due to higher prices as well aslower operating and overhead expenses resulting from significantcost-cutting efforts,” said CEO Ray R. Irani. He said Oxy is ontarget to reduce corporate-wide selling, general and administrativecosts by at least $250 million annually by 2001, compared with its1997 base.
Oil and gas divisional earnings grew 69% to $278 million beforespecial items for the third quarter, compared with $61 million forthe third quarter of 1998, primarily as a result of higher crudeoil and natural gas prices, lower exploration costs and loweroperating costs resulting from a more focused base of operations.Oil and gas results after special items were $279 million comparedto $156 million in the prior period. U.S. gas production rose to673 MMcf/d from 603 MMcf/d in 3Q98.
Chemical divisional earnings were $40 million, compared with $62million for the third quarter of 1998 but were 135% greater than inthe second quarter 1999.
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