Oxy Profit Jumps on Higher Prices, Production

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Occidental Petroleum Corp.’s third-quarter net income jumped nearly 50 percent as the energy company benefited from higher oil prices and record production at its U.S. fields.

The Los Angeles company on Thursday reported net income of $1.77 billion ($2.17 per share), compared with $1.19 billion ($1.46) in the same period a year earlier. Revenue rose 26 percent to $6 billion.

Analysts surveyed by Thomson Reuters on average expected per-share profit of $1.95 on revenue of $5.7 billion.

The company’s third quarter domestic production was 436,000 barrels of oil equivalent per day, the highest in its history. The company noted that worldwide crude oil prices were $97.33 per barrel over the first nine months of this year, compared with $73.58 during the same period last year.

“We continue to generate strong financial results with cash flow from operations of $8.6 billion for the first nine months … and annualized (return on equity) of 20 percent,” said Chief Executive Stephen Chazen in a statement.

Shares were up $7.74, or nearly 9 percent, to $94.94 in midday trading on the New York Stock Exchange.

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