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.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.