10-QPeriod: Q1 FY2021

OCCIDENTAL PETROLEUM CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 10, 2021For Securities:OXYOXY-WT

Summary

Occidental Petroleum Corporation (OXY) reported a net loss of $146 million ($0.36 per diluted share) for the first quarter of 2021, a significant improvement from the $2.013 billion loss ($2.49 per diluted share) in the same period of 2020. This turnaround was driven by a substantial increase in commodity prices, particularly for oil and natural gas, alongside higher chemical product prices. Net sales for the quarter were $5.3 billion, down from $6.6 billion in the prior year's quarter, primarily due to lower sales volumes and derivative gains recognized in Q1 2020. The company generated positive operating cash flow of $910 million, an increase from $788 million in operating cash flow from continuing operations, signaling a healthy recovery in its core business. While capital expenditures remain significant at $579 million, Occidental is actively managing its balance sheet, utilizing proceeds from asset sales and operational cash flow to reduce debt and financial obligations. The company ended the quarter with $2.3 billion in cash and cash equivalents, demonstrating improved liquidity.

Financial Statements
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Key Highlights

  • 1Occidental Petroleum reported a net loss of $146 million for Q1 2021, a substantial improvement from a $2.013 billion net loss in Q1 2020.
  • 2Net sales decreased to $5.3 billion in Q1 2021 from $6.6 billion in Q1 2020, primarily due to lower sales volumes.
  • 3The company generated strong operating cash flow of $910 million in Q1 2021, indicating a recovery in core business operations.
  • 4Total assets decreased slightly to $79.4 billion as of March 31, 2021, from $80.1 billion as of December 31, 2020.
  • 5Total liabilities also saw a decrease, ending Q1 2021 at $79.4 billion compared to $80.1 billion at year-end 2020, with long-term debt, net at $35.5 billion.
  • 6Occidental is actively managing its debt, repaying $174 million in the first quarter and aiming to use excess cash flow and asset sale proceeds to further strengthen its balance sheet.
  • 7The company reported an income from continuing operations of $299 million in Q1 2021, a significant turnaround from a loss of $2.013 billion in Q1 2020, driven by higher commodity prices.

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