Occidental sees 56 percent 4Q profit rises on oil prices

Source: Energy Digital

Date :30/01/2008 13:40:44

Surging oil prices today helped Occidental Petroleum Corp post a 56 percent increase in its fourth-quarter profit, its highest ever annual profit.

Occidental, one of the world's biggest oil and gas companies, also reaped gains from a gas pipeline project in the United Arab Emirates that began operating last year. The company's daily production of oil and gas averaged 590,000 barrels during the quarter, up from 561,000 a year earlier.

Occidental earned $1.45 billion, or $1.74 a share, during the three-month period ended December 31, up from $930 million, or $1.09 a share, a year earlier. The latest figure includes charges of two cents a share for severance and discontinued operations.

Strong performance

Excluding those charges, Occidental earned $1.76 a share, above expectations of $1.69 a share among analysts polled by Thomson Financial.

Revenue climbed 37 percent to $5.52 billion from $4.04 billion, also well above analyst expectations for $4.62 billion.

Its shares rose $3.92, or 6.1 percent, to $68.49 Tuesday.

Ray Irani, Occidental's chief executive officer, said "high commodity prices clearly have boosted earnings throughout the industry."

January 30, 2008