Tuesday, July 27, 2010

Occidental Petroleum (NYSE:OXY) Misses Earnings and Production Numbers

Although Occidental Petroleum (NYSE:OXY) had a decent quarter, with earnings rising to $1.1 billion, or $1.31 a share, gaining 56 percent over the $682 million, or 84 cents a share last year in the same quarter, they fell short of analysts' expectations by 4 cents a share.

What troubled investors and analysts more was missing the production numbers, which were expected to average 750,000 barrels a day, but which came in at 743,000 barrels a day.

The reason behind the weaker-than-expected performance was the payout to partners when prices increase beyond a certain level, which Occidental said cut production by 29,000 barrels a day.

Revenue for the second quarter did shoot up some, rising to $4.76 billion, or 29 percent.

The worst performing units of the company were the one housing Phibro, which the company acquired from Citigroup (NYSE:C). That unit lost $13 million or 79 percent, while the chemicals business earnings dropped 6.1 percent to $108 million.

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