Occidental Petroleum Doubles Profits Thanks to Rising Oil Prices

The Occidental Petroleum logo is displayed on a ground display at the New York Stock Exchange (NYSE) in New York, United States, April 30, 2019. REUTERS / Brendan McDermid

HOUSTON, Nov. 4 (Reuters) – Occidental Petroleum Corp (OXY.N) more than doubled third-quarter profit to $ 836 million from the previous three months, the company said in a document.

Oil producers posted higher results this quarter as commodity prices rebound from the coronavirus pandemic.

Occidental reported third quarter earnings per share of 65 cents. Adjusted earnings were 87 cents per share, beating the market consensus estimate of 66 cents per share, according to data from Refinitiv. The producer suffered a loss of $ 4.07 per share during the same period last year.

Occidental has “generated record free cash flow before working capital in each quarter of this year, enabling us to reduce debt and strengthen our balance sheet,” Managing Director Vicki Hollub said in a statement.

Occidental joins a group of U.S. oil producers using the proceeds of rising oil prices to reduce debt and increase free cash flow, with cash distribution to shareholders. It repaid $ 4.3 billion in long-term debt during the quarter.

Its chemicals business in the last quarter generated record profits and the company is forecasting pre-tax profit of $ 480 million for this quarter.

Fourth-quarter oil and gas production could be between 1.13 million and 1.16 million barrels per day, the company said, stable at slightly lower than third-quarter production from continuing operations. Production in the Permian Basin will be between 472,000 and 482,000 barrels of oil and gas per day, below the 499,000 barrels per day in the third quarter, he said.

Reporting by Sabrina Valle Editing by Marguerita Choy

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