On Thursday oil company Occidental Petroleum Corporation (OXY) reported a big fall in its fourth quarter profit due to charges of $1.1 billion. However, adjusted net income and revenue were both up as oil production rose in the quarter.
The Los Angeles, California-based company saw its fourth quarter profits fell dramatically to $336 million, or 42 cents per share, from $1.63 billion, or $2.01 per share, in year earlier period.
In the fourth quarter OXY booked after-tax charges of $1.1 billion, which caused profits to plunge.
The company’s core income for the quarter was $1.5 billion, or $1.83 per share, versus $1.6 billion, or $2.02 per share, in quarter four of 2011. Analysts, according to Thomson Reuters, were expecting Occidental to earn an adjusted $1.66 per share.
Fourth quarter revenue was up +2% from $6.03 billion in 2011 to $6.17 in 2012. This beat the Wall Street view as analysts expected revenue to be $5.85 billion.
The production of US oil rose to the equivalent of 475,000 barrels per day for the quarter. Total 2012 production increase 5% versus 2011 output.
Occidental Petroleum shares were up $1.58, or +1.85%, during pre-market trading on Thursday. The stock is down -14.89% over the past year.
The Bottom Line
Shares of Occidental Petroleum (OXY) have a dividend yield of 2.53% based on last night’s closing price of $85.32.
Occidental Petroleum Corporation (OXY) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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