OxyChem Q1 profit plunge 82% to $30m on weak US housing market

29 April 2010 13:16  [Source: ICIS news]

TORONTO (ICIS news)--Occidental Petroleum’s chemicals business (OxyChem) posted an 82% decline in first-quarter earnings to $30m (€23m), from $169m in the 2009 first quarter, mainly due to weak US housing and construction markets, the Los Angeles-based energy major said on Thursday.

“The first quarter 2010 results reflect the continued weakness in the domestic market, particularly in the housing and construction sectors, and the significant margin erosion that was experienced through 2009 that carried into 2010,” Occidental said in commenting on the chemical segement's first-quarter performance.

However, OxChem's sales for the three months ended 31 March rose to $956m, up almost 21% from the 2009 first quarter.

Overall, Occidental reported first-quarter net income of $1.06bn, up sharply from $368m in the year-earlier period, due to higher crude oil and natural gas prices and higher volumes, it said.

($1 = €0.76)

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By: Stefan Baumgarten
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