Summary
Occidental Petroleum Corporation reported a net income of $78 million ($0.10 per diluted share) for the first quarter of 2016, a significant improvement from the $218 million net loss ($0.28 per diluted share) in the same period of 2015. This turnaround was largely driven by a $438 million gain from discontinued operations, primarily related to a settlement with the Republic of Ecuador regarding an arbitration award, as well as gains from asset sales. Despite the overall positive net income, the company's continuing operations posted a net loss of $360 million. This loss was attributed to lower realized commodity prices in the oil, gas, and chemical segments, unfavorable marketing margins, and an impairment charge related to the distribution of California Resources shares. The company also saw a decrease in net sales to $2.1 billion from $3.1 billion year-over-year, reflecting the challenging commodity price environment. Occidental's liquidity remains robust, with approximately $3.2 billion in cash and cash equivalents at the end of the quarter, and the company proactively managed its debt by issuing new senior notes and planning to redeem existing ones.
Financial Highlights
45 data points| Revenue | $2.12B |
| Operating Expenses | $272.00M |
| Net Income | $78.00M |
| EPS (Basic) | $0.10 |
| EPS (Diluted) | $0.10 |
| Shares Outstanding (Basic) | 763.40M |
| Shares Outstanding (Diluted) | 763.40M |
Key Highlights
- 1Occidental Petroleum reported a net income of $78 million for Q1 2016, a substantial recovery from a net loss of $218 million in Q1 2015.
- 2A significant gain of $438 million from discontinued operations, primarily from an Ecuador arbitration settlement, contributed heavily to the positive net income.
- 3Despite the overall profit, continuing operations incurred a net loss of $360 million, impacted by lower commodity prices and asset impairments.
- 4Net sales decreased to $2.1 billion from $3.1 billion year-over-year due to lower commodity prices.
- 5The company reduced its capital expenditures to $0.6 billion in Q1 2016 from $2.2 billion in Q1 2015, reflecting a response to the market conditions.
- 6Occidental managed its debt by issuing $2.75 billion in senior notes in April 2016 and planning to redeem existing notes.
- 7The company's oil and gas segment reported a loss of $485 million, widening from $266 million in the prior year's quarter, due to depressed commodity prices.