uploads///OXY Q Post Net Income

Occidental Petroleum Turned Its 2Q16 Losses into Profits in 2Q17

By

Updated

2Q17 adjusted net income

Occidental Petroleum (OXY) announced its 2Q17 earnings on August 2, 2017, after the market closed. Occidental Petroleum reported a better-than-expected profit of ~$119 million in 2Q17. Wall Street analysts were expecting a profit of ~$109 million.

On a year-over-year basis, Occidental Petroleum cut its losses by more than 100% and turned its 2Q16 loss into a profit in 2Q17. In 2Q16, OXY reported a loss of $136 million. On a sequential basis and excluding any one-time items, Occidental Petroleum’s profit fell ~4% when compared with its 1Q17 profit of ~$124 million.

Article continues below advertisement

2Q17 reported net income

Occidental Petroleum’s (OXY) 2Q17 adjusted net income excludes its one-time benefits and charges totaling $388 million. The majority of these charges are related to the one-time gain from asset sales related to the Domestic Oil and Gas business and one-time income tax charges.

Including these one-time items, OXY’s reported net income on a GAAP[1. generally accepted accounting principles] basis was higher at $507 million ($0.66 per share) in 2Q17 from -$139 million (-$0.18 per share) in 2Q16.

How OXY’s quarterly net incomes are trending in 2017

In 1Q17, Occidental Petroleum (OXY) reported a better-than-expected profit of ~$124 million in 1Q17. Wall Street analysts were expecting a profit of ~$71 million.

On a year-over-year basis, OXY turned its losses into profits. In 1Q16, OXY reported a loss of ~$426 million. On a sequential basis and excluding any one-time items, OXY saw profits in 1Q17 from a loss of ~$97 million in 4Q16.

OXY’s peers Marathon Oil (MRO) and Southwestern Energy (SWN) reported adjusted net income of about -$57 million and $87 million, respectively, in 1Q17. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) invests at least 80.0% of its total assets in oil and gas exploration companies.

In this series…

Having analyzed Occidental Petroleum’s 2Q17 net income, in the course of this series, we’ll also look at Occidental Petroleum’s revenues, production, cash flows, short interest in OXY stock, and Wall Street analysts’ ratings.

Advertisement

More From Market Realist