Occidental Petroleum Corporation (OXY) saw its loss narrow to $241 million, or $0.32 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2,609 million, or $3.42 a share.
Revenue during the quarter dropped 15.80 percent to $2,733 million from $3,246 million in the previous year period. Gross margin for the quarter contracted 543 basis points over the previous year period to 51.04 percent. Operating margin for the quarter stood at negative 9.44 percent as compared to a negative 94.36 percent for the previous year period.
Operating loss for the quarter was $258 million, compared with an operating loss of $3,063 million in the previous year period.
"We achieved the high end of our company-wide production guidance of 605,000 BOE per day due to continued improvement in operational efficiency, increased well productivity in Permian Resources and record production in Abu Dhabi and Oman. We also ended the third quarter with $3.2 billion in cash," said president and chief executive officer Vicki Hollub.
Operating cash flow drops significantly
Occidental Petroleum Corporation has generated cash of $1,598 million from operating activities during the nine month period, down 50.89 percent or $1,656 million, when compared with the last year period.
The company has spent $1,976 million cash to meet investing activities during the nine month period as against cash outgo of $5,423 million in the last year period. It has incurred net capital expenditure of $1,745 million on net basis during the nine month period, down 64.40 percent or $3,157 million from year ago period.
The company has spent $1,706 million cash to carry out financing activities during the nine month period as against cash outgo of $1,342 million in the last year period.
Cash and cash equivalents stood at $3,180 million as on Sep. 30, 2016, up 24.85 percent or $633 million from $2,547 million on Sep. 30, 2015.
Working capital decreases marginally
Occidental Petroleum Corporation has witnessed a decline in the working capital over the last year. It stood at $3,023 million as at Sep. 30, 2016, down 2.70 percent or $84 million from $3,107 million on Sep. 30, 2015. Current ratio was at 1.53 as on Sep. 30, 2016, up from 1.42 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 101 days for the quarter from 77 days for the last year period. Days sales outstanding went up to 126 days for the quarter compared with 106 days for the same period last year.
Days inventory outstanding has decreased to 32 days for the quarter compared with 73 days for the previous year period. At the same time, days payable outstanding went up to 259 days for the quarter from 256 for the same period last year.
Debt remains almost stable
Total debt of Occidental Petroleum Corporation remained almost stable for the quarter at $8,333 million, when compared with the last year period. Total debt was 20.02 percent of total assets as on Sep. 30, 2016, compared with 16.57 percent on Sep. 30, 2015. Debt to equity ratio was at 0.37 as on Sep. 30, 2016, up from 0.28 as on Sep. 30, 2015.
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