Occidental Petroleum Profits Fall 80 Percent

17

Occidental Petroleum Corp. said Thursday its first-quarter net income fell 80 percent from a year ago as results were crushed by lower oil and natural gas prices. The results were still better than Wall Street estimates.

The Los Angeles oil and gas producer reported net income of $368 million (45 cents a share), compared with $1.85 billion ($2.22) a year ago. Revenue fell 49 percent to $3.07 billion, reflecting lower oil and natural gas prices and reduced energy consumption amid the global recession.

Deducting one-time items, the company earned 50 cents a share. Analysts surveyed by Thomson Reuters on average expected adjusted earnings of 37 cents a share on $3.18 billion revenue.

“I’m pleased with our effectiveness in adjusting to the ongoing volatile market conditions,” said Chief Executive Ray Irani in a statement, noting that the company has cut costs in reaction to decline in demand.

Occidental shares closed up 41 cents to $55.97 on the New York Stock Exchange.