Summary
Occidental Petroleum Corporation (OXY) reported a significant improvement in financial performance for the second quarter and first six months of 2021 compared to the same periods in 2020, driven by a substantial increase in oil prices. Net sales more than doubled year-over-year for the quarter, reaching $5.96 billion, and grew to $11.25 billion for the six-month period. The company moved from substantial net losses in 2020 to a net income of $103 million for the quarter and a net loss of $43 million for the six months, indicating a strong recovery, especially considering the prior year was heavily impacted by asset impairments. Key operational priorities for 2021 include maximizing cash flow, sustaining production, and reducing debt. The company demonstrated commitment to strengthening its balance sheet by repaying $174 million of debt in Q1 and undertaking a significant $3.1 billion debt tender offer in July 2021. While the company is still working to reduce its overall debt burden, the improved operating environment and proactive liability management efforts are positive signs for investors. The company maintained a substantial cash balance of $4.6 billion as of June 30, 2021, and expects existing cash and credit facilities to be sufficient for near-term obligations.
Financial Highlights
48 data points| Revenue | $6.10B |
| Cost of Revenue | $676.00M |
| Gross Profit | $5.43B |
| SG&A Expenses | $177.00M |
| Operating Income | $399.00M |
| Net Income | $103.00M |
| EPS (Basic) | $-0.10 |
| EPS (Diluted) | $-0.10 |
| Shares Outstanding (Basic) | 934.20M |
| Shares Outstanding (Diluted) | 934.20M |
Key Highlights
- 1Occidental Petroleum reported a significant rebound in net sales, with Q2 2021 sales nearly doubling to $5.96 billion compared to $2.93 billion in Q2 2020. For the first six months, net sales increased to $11.25 billion from $9.54 billion.
- 2The company returned to profitability, reporting net income of $103 million for Q2 2021, a stark contrast to a net loss of $8.13 billion in the same period last year. The six-month period showed a reduced net loss of $43 million, down from $10.14 billion.
- 3Operating cash flow from continuing operations more than doubled to $4.11 billion for the first six months of 2021, up from $1.66 billion in the prior year, driven by higher commodity prices.
- 4Occidental proactively managed its debt, repaying $174 million in Q1 2021 and completing a $3.1 billion debt tender offer in July 2021, reducing its overall debt face value to $32.0 billion.
- 5Capital expenditures for the first six months of 2021 were $1.28 billion, a decrease from $1.68 billion in the prior year, reflecting disciplined capital allocation.
- 6The company's Oil and Gas segment saw a strong recovery, with income from continuing operations at $631 million for Q2 2021, compared to a loss of $7.73 billion in Q2 2020, largely due to higher commodity prices.
- 7As of June 30, 2021, Occidental held $4.57 billion in cash and cash equivalents, providing a strong liquidity position.