OxyChem earnings up in Q4 2012 but down for full year

31 January 2013 13:22  [Source: ICIS news]

LONDON (ICIS)--Occidental Chemical Corporation (Oxychem) reported a 25% year-on-year increase in earnings for the fourth quarter of 2012, while segment earnings were down for the year as a whole, the US-chemicals producer said on Thursday.

Fourth-quarter earnings for the Occidental Petroleum subsidiary rose to $180m (€133m), driven by higher export volumes for caustic soda and vinyl chloride monomer (VCM), and lower ethylene costs.

Earnings for 2012 as a whole were $720m, a decline of 16% on the $861m generated by the company in 2011. Oxychem sales were $1.1bn in the fourth quarter of the year compared to $1bn the previous year, and $4.6bn in 2012 compared to $4.8bn in 2011.

Oxychem attributed the fall in annual earnings to economic weakness and increased competition in Europe and Asia, while mild US drought and winter conditions impacted calcium chloride and potassium hydroxide sales.

Occidental Petroleum’s total group net income for the quarter was $336m compared to $1.6bn in 2011, with the shortfall due in large part to a $1.1bn charge related to the impairment of gas assets in midwestern US.

($1 = €0.74)

By: Tom Brown
+44 208 652 3214

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