Summary
Occidental Petroleum Corporation (OXY) reported a significant financial turnaround in the nine months ended September 30, 2021, compared to the same period in 2020, driven by a substantial increase in net sales and a return to profitability. Net sales surged to $18.0 billion from $13.6 billion, reflecting higher commodity prices and improved chemical and midstream segment performance. The company generated a net income of $785 million, a stark contrast to the $13.7 billion net loss in the prior year, largely due to a significant reduction in asset impairments and other charges. Operationally, Occidental demonstrated strong cash flow generation from continuing operations, reaching $7.0 billion for the nine months ended September 30, 2021, up from $2.5 billion in the prior year, primarily fueled by higher commodity prices. The company also made substantial progress on its debt reduction strategy, repaying $4.5 billion of debt during the period and retiring $750 million in interest rate swaps, signaling a stronger focus on balance sheet improvement.
Financial Highlights
48 data points| Revenue | $6.88B |
| Cost of Revenue | $731.00M |
| Gross Profit | $6.15B |
| SG&A Expenses | $240.00M |
| Operating Income | $1.23B |
| Net Income | $828.00M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 935.40M |
| Shares Outstanding (Diluted) | 957.70M |
Key Highlights
- 1Significant revenue increase: Net sales grew to $18.0 billion for the nine months ended September 30, 2021, up from $13.6 billion in the prior year, driven by higher commodity prices.
- 2Return to profitability: Occidental reported a net income of $785 million for the nine months ended September 30, 2021, a substantial improvement from a net loss of $13.7 billion in the same period of 2020.
- 3Stronger operating cash flow: Cash flow from continuing operations increased to $7.0 billion for the first nine months of 2021, up from $2.5 billion in 2020, reflecting improved market conditions.
- 4Debt reduction progress: The company repaid $4.5 billion in debt and retired $750 million in interest rate swaps during the first nine months of 2021, strengthening its financial position.
- 5Divestiture program completion: Occidental completed its large-scale asset divestiture program with the sale of its Ghana assets, as well as Permian Basin and DJ Basin assets earlier in the year.
- 6Improved segment performance: Both the Oil and Gas and Chemical segments showed significant improvements in pre-tax income, while the Midstream and Marketing segment moved from a substantial loss to a profit.