Occidental Petroleum targets $170m in Q2 chemical earnings

25 April 2013 18:42  [Source: ICIS news]

HOUSTON (ICIS)--Occidental Petroleum’s OxyChem chemicals business should improve earnings to about $170m (€131m) in the current second quarter, from $159m in the first quarter, the chief financial officer of the US-based energy and chemicals firm said on Thursday.

Cynthia Walker said the sequential increase in quarterly chemical earnings would be driven by higher seasonal demand from construction and agricultural markets.

OxyChem's 2013 Q1 earnings of $159m were down $25m year on year from $184m in 2012’s first quarter because of weaker chlorinated organics demand and pricing, combined with higher natural gas costs, the company reported earlier on Thursday.

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

During Occidental’s results conference call, Walker said that on a sequential basis, Q1 chemical earnings were down from $180m in 2012’s fourth quarter, mainly because of higher ethylene costs and increased competitive activity.

($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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