Summary
Occidental Petroleum Corporation (OXY) reported a significant increase in financial performance for the fourth quarter and full year ended December 31, 2005. The company announced net income of $1.152 billion ($2.84 per share) for the fourth quarter of 2005, a substantial rise from $742 million ($1.86 per share) in the prior year's fourth quarter. For the full year 2005, net income more than doubled to $5.281 billion ($13.09 per share), compared to $2.568 billion ($6.49 per share) in 2004. This strong performance was driven by robust results in both the Oil and Gas and Chemical segments. The Oil and Gas segment saw earnings surge by over 57% in the fourth quarter, primarily due to higher crude oil and gas prices and increased sales volumes. The Chemicals segment also demonstrated healthy growth, with earnings up 37% in the fourth quarter, attributed to higher sales prices and contributions from recent acquisitions. Investors should note that the company also provided 'core earnings,' a non-GAAP measure that excludes certain significant items, which also showed substantial year-over-year improvements in both segments.
Key Highlights
- 1Fourth quarter 2005 net income of $1.152 billion ($2.84/share), up from $742 million ($1.86/share) in Q4 2004.
- 2Full year 2005 net income of $5.281 billion ($13.09/share), a significant increase from $2.568 billion ($6.49/share) in 2004.
- 3Oil and Gas segment earnings increased by over 57% in Q4 2005 year-over-year, driven by higher commodity prices and volumes.
- 4Chemical segment earnings rose by 37% in Q4 2005 year-over-year, benefiting from higher sales prices and acquisition contributions.
- 5Worldwide oil and gas production increased to an average of 589,000 BOE per day in Q4 2005, up 5.6% from Q4 2004.
- 6Significant non-recurring items in 2005 included substantial tax benefits and gains from asset sales, contributing to reported net income.
- 7Capital expenditures increased to $2.423 billion for the full year 2005, up from $1.843 billion in 2004.