US OxyChem’s Q1 net earnings fall 14% weaker demand, higher costs

25 April 2013 13:11  [Source: ICIS news]

LONDON (ICIS)--Occidental Petroleum’s chemicals business, OxyChem, reported a 16% year-on-year decrease in its 2013 first-quarter net earnings to $159m (€122m), primarily as a result of weaker demand for chlorinated organics and higher raw material costs, the US-based firm said on Thursday.

“The lower earnings resulted from weaker chlorinated organics demand and pricing combined with higher natural gas costs, partially offset by higher caustic soda exports,” the company said.

OxyChem’s net sales for the first quarter rose slightly to $1.18bn from $1.15bn in the corresponding quarter of 2012.

Overall, Occidental Petroleum, an oil and gas exploration and production company, reported a first-quarter net income of $1.36bn down from $1.56bn for the same period in 2012.

The group’s total net sales in the first quarter fell 6.3% year on year to $5.87bn, following lower oil and gas sales.

Stephen Chazen, president and CEO, said: "We executed well in the first quarter and to date are running ahead of our full-year objectives in our program to improve domestic operational and capital efficiencies.

"We have reduced both our domestic well and operating costs by about 19% relative to 2012,” he added.

($1 = €0.77)

By: Franco Capaldo
+44 (0)20 8652 3214

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