US OxyChem’s Q2 net earnings rise on pre-tax gain

30 July 2013 12:55  [Source: ICIS news]

LONDON (ICIS)--Occidental Petroleum’s chemicals business, OxyChem, reported a 42% year-on-year rise in its 2013 second-quarter net earnings to $275m (€206m), on the back of a pre-tax gain from the sale of its investment in a Brazilian chemical facility called Carbocloro, the US-based firm said on Tuesday.

After exclusion of the $131m pre-tax gain, OxyChem’s core earnings for the second quarter were $144m, compared with $194m reported in the second quarter of 2012.

“The lower earnings resulted from lower caustic soda export volumes due to continued weak economic conditions in Europe and slowing demand in Asia, particularly within the pulp and paper and alumina segments; reduced alumina demand in South America; continued weak export chlorinated organics pricing resulting from new organics production in Asia; and higher energy and feedstock costs,” the company said.

OxyChem’s net sales for the second quarter rose slightly to $1.19bn from $1.17bn in the corresponding quarter of 2012.

Overall, Occidental Petroleum, an oil and gas exploration and production company, reported a second-quarter net income of $1.32bn, down from $1.33bn for the same period in 2012.

Net income in the second quarter of 2013 included non-core items amounting to a net after-tax benefit of $46m, the group said.

Occidental Petroleum’s total net sales in the second quarter rose to $5.96bn from $5.77bn in the corresponding period of 2012.

Stephen Chazen, president and CEO, said: "Our total company production of 772,000 barrels of oil equivalent per day in the second quarter of 2013 was 6,000 barrels [per day] higher than production in the second quarter of 2012 and 9,000 barrels [per day] higher than production in the first quarter of 2013.

“While our Qatar production rebounded to its prior level after the first-quarter planned turnarounds, insurgent activity in Colombia and severe storms in West Texas, as well as planned turnarounds in the Permian, held back our overall production. Excluding the effects of the storms, our domestic production is continuing to deliver the results we expected,” he added.

($1 = €0.75)

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

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