Occidental Petroleum reports second quarter earnings of $473 million

Occidental Petroleum Corp., Los Angeles, said net income for the second quarter was $473 million, up 17% from second quarter 2000 net income. Sales for the period totaled $3.8 billion, up 19% from the same quarter a year ago. Earnings before special items were $466 million, up 34% from second quarter 2000.

July 19, 2001

2 min read

By the OGJ Online Staff

HOUSTON, July 19 -- Occidental Petroleum Corp., Los Angeles, said net income for the second quarter was $473 million, up 17% from second quarter 2000 net income.

Sales for the period totaled $3.8 billion, up 19% from the same quarter a year ago. Earnings before special items were $466 million, up 34% from second quarter 2000.

Ray R. Irani, chairman and chief executive officer, said, "Strong energy prices, particularly in California's natural gas market, resulted in outstanding earnings and cash flow for the second quarter and the first half of this year."

Oxy said that in the second quarter, it reduced its debt by $244 million, lowering total debt by the end of the quarter to $5.9 billion and establishing a debt-to-capitalization ratio of 51%.

The company said oil and gas segment earnings before special items were $799 million for the quarter, up from $557 million for the same quarter a year ago. It attributed the higher earnings to higher US natural gas prices, but said the gas prices were partially offset by lower worldwide crude oil prices and lower crude oil volumes, particularly in Colombia.

Oxy said chemicals segment earnings before special items fell sharply to $58 million for the quarter, down from $154 million a year ago. It attributed the decline in earnings to lower sales prices for polyvinyl chloride, ethylene dichloride, and chlorine as well as higher energy costs. It noted higher prices for caustic soda helped partially offset these factors, however.