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Occidental Petrl. (OCP)

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Monday 05 November, 2001

Occidental Petrl.

3rd Quarter & 9 Mths Results

Occidental Petroleum Corp
2 November 2001

For Immediate Release: October 17, 2001 

          OCCIDENTAL PETROLEUM ANNOUNCES THIRD QUARTER 2001 EARNINGS

                  BEFORE SPECIAL ITEMS OF $0.85 PER SHARE

LOS ANGELES -- Occidental Petroleum Corporation (NYSE:OXY) announced earnings 
before special items for the third quarter 2001 of $317 million ($0.85 per 
share), compared with $370 million ($1.00 per share) for the same period a year 
ago.

In announcing the results, Dr. Ray R. Irani, chairman and chief executive 
officer, said, 'The strong third quarter performance of our oil and gas segment 
and the profitability of our chemical segment, despite the slowing economy, has 
kept us on track for another record year. Our earnings before special items, of 
$1.3 billion, or $3.48 per share, through the first three quarters nearly 
equaled our record performance for the entire year 2000. The combination of 
strong cash flow from operations and proceeds from non-strategic asset sales has
resulted in substantial debt reduction that, along with outstanding earnings, 
has enables us to slash our debt-to-capitalization ration to 46 percent, the 
lowest level in nearly two decades.'

Net income for the third quarter of 2001 was $444 million ($1.19 per share), 
compared with $402 million ($1.09 per share) for the same period of 2000.  The 
third quarter 2001 included the sale of non-strategic assets, including 
Occidental's interest in the Tangguh LNG project in Indonesia and the sale of 
the entity that leased a pipeline in Texas to Occidental's former MidCon 
subsidiary for after-tax cash proceeds of $750 million, resulting in a net 
after-tax gain of $127 million.  The third quarter 2000 included net after-tax 
gains of $31 million. 

Debt Reduction

During the third quarter, the $750 million in after-tax proceeds from the 
Indonesia and pipeline asset sales, combined with free cash flow from 
operations, lowered Occidental's total debt to $5.0 billion, compared to $6.4 
billion at the end of 2000 and the pro-forma peak of $9.2 billion in April 2000.
The reduced debt level, along with the drop in interest rates, lowered interest 
expense (including distribution on trust preferred securities) to $98 million 
from $113 million for the second quarter 2001 and $152 million for the third 
quarter of 2000.

Oil and Gas

Oil and gas segment earnings before special items were $528 million for the 
third quarter 2001, compared with $690 million for the same period in 2000.  The
decline in earnings is primarily due to lower worldwide crude oil prices and 
higher exploration expense.  The third quarter 2001 exploration expense included
the write-off of the Gibraltar well in Colombia.

Oil and gas segment earnings for the third quarter 2001 were $927 million and 
included the $399 million gain, net of tax, from the sale of the Tangguh LNG 
project.  Third quarter 2000 oil and gas earnings were $696 million, including 
net gains of $6 million from special items.

Chemicals

Earnings from the chemicals segment were $40 million for the third quarter 2001,
compared with $47 million for the third quarter 2000.  The results reflect 
improvements in those chemicals businesses operated by the company that were 
more than offset by significantly lower earnings from our petrochemical equity 
investment.  

Nine Months Results

For the first nine months of 2001, Occidental's earnings before special items 
increased 31-percent to $1.3 billion ($3.48 per share), compared with $977 
million ($2.65 per share) for the same period of 2000.  Net income was $1.4 
billion ($3.77 per share) for the first nine months of 2001, compared with $1.2 
billion ($3.36 per share) for the first nine months of 2000.  Sales rose by 
approximately 20-percent to $11.6 billion for the first nine months of 2001, 
from $9.6 billion for the same period a year ago.



Contacts: 

Lawrence P. Meriage (media)
310-443-6562
Kenneth J. Huffman (investors)
212-603-8183
On the web: 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, as well as pro-forma estimates 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. 

SUMMARY OF SEGMENT NET SALES AND EARNINGS

(Millions, except per-share amounts)

                                        Third Quarter       Nine Months

Periods Ended September 30              2001     2000     2001     2000

_________________________________    _______  _______  _______  _______

SEGMENT NET SALES

   Oil and gas                       $ 2,521  $ 2,972  $ 9,097  $ 6,634

   Chemical                              764      891    2,508    2,998

                                     _______  _______  _______  _______

   Net sales                         $ 3,285  $ 3,863  $11,605  $ 9,632

_________________________________    _______  _______  _______  _______

SEGMENT EARNINGS (LOSS)

  Oil and gas                        $   927  $   696  $ 2,679  $ 1,647

  Chemical                                40       47       19      224

                                     _______  _______  _______  _______

                                         967      743    2,698    1,871

Unallocated Corporate Items

  Interest expense, net (a)              (60)     (97)    (207)    (300)

  Income taxes (b)                      (129)    (169)    (553)    (668)

  Trust preferred distributions

    & other                              (13)     (17)     (43)     (50)

  Other (c)                             (321)     (59)    (467)     383

                                     _______  _______  _______  _______

Income before extraordinary items

  and effect of changes in 

  accounting principles                  444      401    1,428    1,236

  Extraordinary items, net                 -        1       (3)       1

  Cumulative effect of changes

    in accounting principles, net          -        -      (24)       -

                                     _______  _______  _______  _______

Net Income                               444      402    1,401    1,237

  Effect of repurchase of Trust

    Preferred Securities                   -        -        -        1

                                     _______  _______  _______  _______

EARNINGS APPLICABLE TO COMMON

  STOCK                              $   444  $   402  $ 1,401  $ 1,238

                                     _______  _______  _______  _______

BASIC EARNINGS PER COMMON SHARE

  Income before extraordinary 

    items and effect of changes

    in accounting principles         $  1.19  $  1.09  $  3.84  $  3.36

  Extraordinary loss, net                  -        -     (.01)       -

  Cumulative effect of changes

    in accounting principles, net          -        -     (.06)       -

                                     _______  _______  _______  _______

                                     $  1.19  $  1.09  $  3.77  $  3.36

                                     _______  _______  _______  _______

DILUTED EARNINGS PER COMMON SHARE

  Income before extraordinary

    items and effect of changes

    in accounting principles         $  1.19  $  1.09  $  3.82  $  3.36

  Extraordinary loss, net                  -        -     (.01)       -

  Cumulative effect of changes

    in accounting principles, net          -        -     (.06)       -

                                     _______  _______  _______  _______

                                     $  1.19  $  1.09  $  3.75  $  3.36

                                     _______  _______  _______  _______

AVERAGE BASIC COMMON SHARES

  OUTSTANDING                          373.5    369.2    371.9    368.7

_________________________________    _______  _______  _______  _______

See footnotes on following page.

(a)  The third quarter and nine months year-to-date 2001 include $24 million and
$85 million, respectively, interest income on notes receivable from Altura 
partners.  The third quarter and nine months year-to-date 2000 include $38 
million and $68 million, respectively.

(b) Includes an offset for charges and credits in lieu of U.S. federal income 
taxes allocated to the segments.  Oil and gas segment earnings have been 
impacted by charges of $35 million and $42 million in the third quarters of 2001
and 2000, respectively.  The oil and gas segment third quarter of 2001 includes 
the tax effects from the sale of its interest in the Tangguh LNG project in 
Indonesia.  The oil and gas segment third quarter of 2000 amount includes the 
tax effects from the partial-interest sale of the subsidiary that owned the Gulf
of Mexico shelf assets and receipt of contingency payments related to a prior 
year sale of a Dutch North Sea subsidiary.  Chemical segment earnings have been 
impacted by credits of $16 million in the third quarter of 2001, $12 million of 
which related to asset dispositions, and $4 million in the third quarter of 
2000.

(c) The third quarter and nine months year-to-date 2001 include preferred 
distributions to the Occidental Permian partners of $25 million and $87 million,
respectively.  The third quarter and nine months year-to-date 2000 include $38 
million and $68 million, respectively.  These amounts are essentially offset by 
the interest income discussed in (a) above.  The third quarter and nine months 
year-to-date 2001 also include a $272 million net-of-tax loss related to the 
sale of Occidental's residual interest in Occidental Texas Pipeline Company.

SUMMARY OF OPERATING STATISTICS

                                      Third Quarter       Nine Months

Periods Ended September 30            2001     2000     2001     2000

_________________________________  _______  _______  _______  _______

NET OIL, GAS AND LIQUIDS

   PRODUCTION PER DAY

United States

  Crude oil and liquids (MBBL)

    California                          78       74       75       68

    Permian                            137      136      136       89

    US Other                             -        -        -        2

                                   _______  _______  _______  _______

      Total                            215      210      211      159

  Natural Gas (MMCF)

    California                         302      305      305      302

    Hugoton                            154      178      161      168

    Permian                            146      161      147      106

    US Other                             -       43        -       89

                                   _______  _______  _______  _______

      Total                            602      687      613      665

Latin America

   Crude oil and condensate (MBBL)

    Colombia                            35       21       19       33

    Ecuador                             13       21       13       19

                                   _______  _______  _______  _______

      Total                             48       42       32       52

Eastern Hemisphere

  Crude oil and condensate (MBBL)

    Oman                                10        8       10        9

    Pakistan                             7        8        7        6

    Qatar                               45       48       43       50

    Russia                              27       28       27       27

    Yemen                               32       32       33       32

                                   _______  _______  _______  _______

      Total                            121      124      120      124

  Natural Gas (MMCF)

    Pakistan                            52       47       50       49

Barrels of Oil Equivalent (MBOE)       493      499      473      454

CAPITAL EXPENDITURES (millions)    $   418  $   275  $   965  $   608

                                   _______  _______  _______  _______

DEPRECIATION, DEPLETION AND

 AMORTIZATION OF ASSETS (millions) $   244  $   268  $   726  $   687

_________________________________  _______  _______  _______  _______



                                                                                
                                              

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