US oil company Occidental Petroleum Corporation (Oxy) joined the long list of oil producers experiencing huge reduction in profits after it announced a 60% drop in net income for the third quarter of 2009 compared to the corresponding period of 2008.
The company reported profits of US$927 million ($1.14 per diluted share) compared to $2.3 billion ($2.77 per diluted share) for Q3 last year.
Dr. Ray Irani, the Oxy CEO and chairman, said that the decrease reflected the lower prices currently being paid for crude oil, but was positive about the company’s growth.
“Occidental achieved year-over-year production growth of nearly 7% in the third quarter and 8% in the nine months of 2009,” Irani said.
“In addition, higher worldwide crude oil prices resulted in an increase in Occidental’s third quarter of 2009 net income of 36% over the second quarter of 2009.”
“The decrease in the third quarter 2009 segment earnings reflected lower crude oil and natural gas prices, partially offset by higher oil and gas sales volumes and lower operating expenses,” he added.
Irani has reason to be positive. Oxy’s shares have increased in value by 36% during 2009.
