Occidental Petroleum’s 1Q18 adjusted net income
Occidental Petroleum (OXY) announced its 1Q18 earnings on May 8 after the market closed. Per its earnings press release, OXY reported a better-than-expected profit of ~$708 million in 1Q18. Wall Street analysts were expecting a lower profit of ~$523 million. On a year-over-year basis, OXY’s profit increased ~471% from 1Q17’s profit of ~$124 million. Sequentially and excluding one-time items, OXY’s profits increased ~126%, compared with a profit of ~$313 million in 4Q17.
Occidental Petroleum 1Q18 reported GAAP net income
Occidental Petroleum didn’t report any adjustments to its 1Q18 earnings, and its reported net income on a GAAP (generally accepted accounting principles) basis was at ~$708 million, or $0.92 per share in 1Q18. OXY’s reported net income was $117 million, or $0.15 per share in 1Q17.
OXY’s lower reported net income in 1Q18 from 1Q17 could be attributed to the higher increase in revenues than total costs. OXY’s revenues saw an increase of ~28% in 1Q18 compared with 1Q17. In comparison to the much higher revenues, OXY’s total costs saw an increase of just ~1%, which acted positively on the bottom line.
OXY’s peer ConocoPhillips (COP) reported a better-than-expected profit of ~$1.14 billion in 1Q18. Wall Street analysts were expecting a lower profit of ~$829 million. COP turned its year-ago losses into profits in 1Q18.
In the next part of this series, we’ll take a look at OXY’s revenues.