OxyChem Q3 earnings down 34% on across the board price falls

25 October 2012 13:26  [Source: ICIS news]

LONDON (ICIS)--The chemicals production division of US petrochemical giant Occidental Petroleum posted a 34% drop in earnings in the third quarter as a result of lower prices “across most product lines”, the company said on Thursday.

Occidental Chemical Corporation (OxyChem) reported a year-on-year fall in earnings to $162m (€124m) in the third quarter of 2012, from $245m over the same period last year.

The earnings drop is more than three times the size of the fall in sales over the quarter, which declined by 10% to to $1.11bn from $1.23bn last year.

The company attributed the disparity between sales and earnings to a fall in prices, particularly for polyvinyl chloride (PVC) and vinyl chloride monomer (VCM).

The decline in prices was only partially offset by lower natural gas and ethylene costs, according to the company.

OxyChem's earnings were also down year on year for the nine months to the end of September, falling by almost a quarter to $540m.

Occidental Petroleum’s overall third quarter net income was $1.38bn, down from $1.77bn in the same quarter last year, the company added.

($1 = €0.77)

By: Tom Brown
+44 208 652 3214

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