OxyChem Q4 profit down 40% on low PVC margins

29 January 2008 16:43  [Source: ICIS news]

TORONTO (ICIS news)--Occidental Petroleum’s OxyChem chemicals business saw fourth-quarter profit decline to $94m (€64m) from $157m in the year-earlier quarter due to lower margins for polyvinyl chloride (PVC), the US energy and chemicals major said on Tuesday.

 

OxyChem net sales for the three months ended 31 December were $1.134bn, up from $1.036bn in the 2006 fourth quarter.

 

For the full 12 months, the chemicals segment earned $601m, down 33% from the 2006 fourth quarter, reflecting lower PVC margins, on sales of $4.664bn, down from $4.815bn in 2006, the company said.

 

Overall, Occidental recorded fourth-quarter net income of $1.452bn, up from $930m in the 2006 fourth quarter, and full-year net income of $5.400bn, up from $4.191bn in 2006, driven by high prices and strong oil and gas earnings, it said.

 

($1 = €0.68)

 

By: Stefan Baumgarten
+1 713 525 2653

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