Oxy Earnings Soar on Higher Oil Prices


Occidental Petroleum Corp. said Tuesday its third-quarter net income jumped 71 percent, fueled by higher oil and natural gas prices and increased production.

The Los Angeles-based exploration and production company said net income rose to $2.27 billion ($2.78 a share), compared with $1.32 billion ($1.58) a year ago. Revenue rose 46 percent to $7.06 billion as the company benefitted from record crude prices, which peaked at $147 a barrel in mid-July.

Occidental said its own average worldwide price for crude oil during the quarter was $104 per barrel, compared to $68 a year ago. Prices have since fallen more than 50 percent on fears of a global economic downturn.

Analysts surveyed by Thomson Reuters had on average been expecting earnings of $2.71 per share.

“As we look forward, we believe our disciplined approach to fiscal management has positioned the company to continue to succeed in the current economic climate,” said Chairman Ray Irani in a statement. The company did not provide guidance for the current quarter.

Occidental shares closed up $7.62, or 18 percent, to $47.70 in Tuesday trading on the New York Stock Exchange.

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