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Occidental Petrl. (OCP)

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Thursday 21 October, 1999

Occidental Petrl.

3rd Quarter & 9 Mths Results - Sales Up

OCCIDENTAL PETROLEUM CORPORATION
19 October 1999


OCCIDENTAL PETROLEUM ANNOUNCES THIRD QUARTER 1999 RESULTS

LOS ANGELES -- Occidental Petroleum Corporation today reported net income
of $126 million ($.35 per share) for the third quarter of 1999, compared
with net income of $38 million ($.10 per share) for the third quarter of
1998.

Earnings before special items were $125 million for the third quarter of
1999, compared with earnings before special items of $3 million for the
third quarter of 1998. Sales were $2.1 billion for the third quarter of
1999, compared with sales of $1.7 billion for the same period in 1998.

Dr. Ray R. Irani, chairman and chief executive officer, said, 'Occidental's
earnings improved from both the third quarter of 1998 and each of the first two
quarters of 1999. Oil and gas margins improved due to higher prices as well as
lower operating and overhead expenses resulting from significant costcutting
efforts.'


Dr. Irani also pointed our that: 

*  In the chemical division, there were price increases in chlorine, caustic
soda and PVC in the third quarter, but the full impact of the increases may not
be realized until early in 2000. 
*  Occidental is on target to reduce corporate-wide selling, general and  
administrative costs by at least $250 million annually by 2001, compared with
its 1997 base. 

Oil and Gas 

Oil and gas divisional earnings before special items were $278 million for the 
third quarter of 1999, compared with $61 million for the third quarter of 1998,
primarily as a result of higher crude oil and natural gas prices, lower 
exploration costs and lower operating costs resulting from a more focused base 
of operations.

Oil and gas third quarter 1999 earnings were 69 percent greater than second
quarter 1999 earnings.

Oil and gas results after special items for the third quarter of 1999 and 1998
were $279 million and $156 million, respectively. The 1999 results include a
charge of $10 million for the recently announced closing of the Bakersfield
office and income of $11 million for a contingent payment on the 1998 sale of
Occidental's interests in the Netherlands. The 1998 results included gains on
asset sales, the write-off of its investment in certain exploration projects and
a charge for reorganization.

In the Horn Mountain discovery in Mississippi Canyon Block 127, announced in
August by operator Vastar Resources, an exploratory well encountered 285 feet of
net pay. Appraisal work is under way. Occidental has a one-third interest.


Chemicals

Chemical divisional earnings were $40 million for the third quarter of 1999,
compared with $62 million for the third quarter of 1998. The decline is due
primarily to higher raw material costs, partially offset by increased sales
price realization.

Chemical third quarter 1999 earnings were 135 percent greater than second
quarter 1999 earnings before special items.

During the third quarter, significant posted price increases were announced for
chlorine, caustic soda and PVC. Due to competitive conditions and contract
provisions, earnings may not reflect the full impact of these increases until
the first quarter of next year.

Other

Unallocated corporate other expenses were $23 million for the third quarter of
1999, compared to $25 million for the same period in 1998. Distributions paid on
the Trust Preferred Securities issued by a subsidiary trust of Occidental in  
the first quarter were $11 million in the third quarter of 1999.


For the first nine months of 1999, Occidental's net income was $65 million ($.17
per share), compared with net income of $401 million ($1.11 per share) for the
first nine months of 1998. The nine months results before special items were net
income of $61 million for 1999, compared with earnings before special items of
$139 million in 1998. Sales were $5.1 billion for the nine months of 1999,
compared with sales of $4.9 billion for the same period of 1998.


Contacts:  Howard Collins (media)
           310-443-6523
           Kenneth J. Huffman (investors)
           212-603-8183

For additional information on Occidental Petroleum Corparation, see the
company's website at www oxy com

Forward-looking statements and estimates regarding exploration and production
activities, oil, gas and commodity chemical prices and their related earnings
effects and cost reductions in this release are based on assumptions concerning
market, competitive, regulatory, environmental operational and other
conditions. Actual results could differ materially as a result of factors
discussed in Occidental's Annual Report on Form 10-K.



(Millions, except per-share amounts)

                                   Third Quarter         Nine months

Periods Ended September 30       1999         1998     1999         1998
Divisional net sales
 Oil and Gas                   $1,265       $1,030   $2,955       $2,509
 Chemical                         848          631    2,149        2,395

                               $2,113       $1,661   $5,104       $4,904

Divisional earnings
  Oil and Gas                  $  279       $  156   $  507       $  768
  Chemical                         40           62       78          280
                                  319          218      585        1,048
Unallocated corporate items
  Interest expense, net          (118)        (106)    (357)        (336)
  Income taxes (a)                (41)         (49)     (65)        (291)
  Trust preferred distributions   (11)           -      (30)          -
  Other                           (23)         (25)     (52)         (58)

Income from continuing operations 126           38       81          363
  Discontinued operations, net     -             -       -            38
  Extraordinary loss, net (b)      -             -       (3)          -
  Cumulative effect of changes in
  accounting principles, net (c)   -             -      (13)          -

Net income                        126           38       65          401

Preferred dividends                -            (4)      (7)         (13)

Earnings applicable to
 common stock                    $126          $34      $58         $388

Earnings per common share
 Basic
  Income from continuing
   operations                   $ .35       $ .10     $ .22       $ 1.00
 Discontinued operations, net       -           -         -          .11
 Extraordinary loss, net (b)        -           -      (.01)           -
 Cumulative effect of changes in
  accounting principles, net (c)    -           -      (.04)           -

 Basic earnings per common
  share (d)                     $ .35       $ .10     $ .17       $ 1.11

Diluted
 Income from continuing
  operations                    $ .35       $ .10     $ .22        $ .99

  Discontinued operations, net      -           -         -          .10
  Extraordinary loss, net (b)       -           -      (.01)           -
  Cumulative effect of changes in
   accounting principles, net (c)   -           -      (.04)           -
 Diluted earnings per common
  share                         $ .35       $ .10     $ .17       $ 1.09

Average common shares 
 outstanding                    357.6       350.0     351.3        351.2

See footnotes below

                                   Third Quarter           Nine Months
Periods Ended September 30         1999     1998           1999    1998

Net oil, gas and liquids
 production per day

United States
 Crude oil and condensate
  (thousands of barrels)             62       69             64      75
 Natural gas liquids
   (thousands of barrels)             9        9              9       8
 Natural gas
   (millions of cubic feet)         673      603            664     603

Other Western Hemisphere
 Crude oil and condensate
   (thousands of barrels)            95       79            103      84

Eastern Hemisphere
 Crude oil and condensate
   (thousands of barrels)           127      164            141     146
 Natural gas
   (millions of cubic feet)          51       54             53     105


Capital expenditures (millions)   $ 120    $ 254          $ 383   $ 840

Depreciation, depletion and
 amortization of assets (millions)$ 198    $ 202          $ 598   $ 653


(a)  Includes an offset for charges and credits in lieu of U.S. federal income
taxes allocated to the divisions.  Divisional earnings have been impacted from
allocations of a $1 million charge and $4 million credit at oil and gas and
chemical, respectively, in the third quarter of 1999 and by $2 million and $7
million credits at oil and gas and chemical, respectively, in the third quarter
of 1998.

(b)  The nine months of 1999 reflects the partial early extinguishment of
11-1/8% senior debentures at a redemption price of 105.563% of the principal
amount. The impact of the early extinguishment is a $3 million charge which is
net of a $l million income tax benefit.

c)  The nine months of 1999 reflects the adoption of SOP 98-5 'Reporting on the
Costs of Start-Up Activities', which requires expensing of start-up costs as
incurred and those costs that are currently capitalized at date of adoption. The
impact of SOP 98-5 is a $15 million charge which is net of an $8 million income
tax benefit. Also reflects the adoption of EITF 98-10 'Accounting for Contracts
Involved in Energy Trading and Risk Management Activities', which requires
energy trading contracts to be marked to market. The impact of EITF 98-10 is a
$2 million credit which is net of a $1 million income tax charge.

(d)  The 1999 earnings per share calculations include the effect of preferred
stock being converted into common stock as a result of the previously announced
September 16, 1999 conversion.


                        

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