Summary
Occidental Petroleum Corporation (OXY) reported strong second quarter 2001 financial results, with earnings before special items reaching $466 million ($1.25 per share), a significant 34% increase compared to the same period in the prior year. This performance was primarily driven by robust energy prices, particularly in the California natural gas market. The company also announced a return to profitability in its chemical segment after several quarters of losses. OXY highlighted substantial progress in its debt reduction efforts, reducing total debt by $480 million in the first half of 2001, bringing the total reduction to nearly $3.3 billion since April 2000. The company anticipates further significant debt reduction through the sale of non-core assets, including its interest in the Tangguh LNG project and a Texas pipeline entity, which are expected to yield an additional $750 million in after-tax proceeds. These actions are strengthening the company's balance sheet, with the debt-to-capitalization ratio improving to 51% as of June 30, 2001.
Key Highlights
- 1Q2 2001 earnings before special items were $466 million ($1.25 per share), up 34% year-over-year.
- 2Strong performance driven by high natural gas prices, especially in California.
- 3Chemical segment returned to profitability in Q2 2001 after prior losses.
- 4Significant debt reduction of $480 million in H1 2001, bringing total reduction to nearly $3.3 billion since April 2000.
- 5Announced sale of Tangguh LNG interest and Texas pipeline entity for $750 million in after-tax proceeds, dedicated to further debt reduction.
- 6Debt-to-capitalization ratio improved to 51% at the end of Q2 2001.
- 7First half 2001 earnings before special items of $976 million ($2.63 per share) marked a company record.