Occidental Petroleum Corporation (OXY), oil and gas segment explores for, develops and produces oil and condensate, natural gas liquids (NGLs) and natural gas. The chemical segment (OxyChem) mainly manufactures and markets basic chemicals and vinyls. The midstream, marketing and other segment (midstream and marketing) gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, carbon dioxide (CO2) and power. It has reported an 89.56 percent plunge in profit for the year ended Dec. 31, 2014. The company has earned $616 million, or $0.79 a share in the year, compared with $5,903 million, or $7.32 a share for the last year. Revenue during the year went up marginally by 2.31 percent to $21,947 million from $21,452 million in the previous year. Gross margin for the year contracted 71 basis points over the previous year to 69 percent. Total expenses were 94.07 percent of annual revenues, up from 63.25 percent for the last year. That has resulted in a contraction of 3082 basis points in operating margin to 5.93 percent.
Operating income for the year was $1,301 million, compared with $7,883 million in the previous year.
Operating cash flow declines
Occidental Petroleum Corporation has generated cash of $11,068 million from operating activities during the year, down 13.38 percent or $1,710 million, when compared with the last year.
The company has spent $8,470 million cash to meet investing activities during the year as against cash outgo of $8,044 million in the last year.
The company has spent $2,202 million cash to carry out financing activities during the year as against cash outgo of $2,933 million in the last year period. It has made net debt repayment of $107 million. It has spent net of $2,467 million on repurchase of common stocks.
Cash and cash equivalents stood at $3,789 million as on Dec. 31, 2014, up 11.67 percent or $396 million from $3,393 million on Dec. 31, 2013.
Working capital increases sharply
Occidental Petroleum Corporation has recorded an increase in the working capital over the last year. It stood at $5,629 million as at Dec. 31, 2014, up 94.84 percent or $2,740 million from $2,889 million on Dec. 31, 2013. Current ratio was at 1.68 as on Dec. 31, 2014, up from 1.34 on Dec. 31, 2013.
Cash conversion cycle (CCC) was almost stable at 147 days for the year, when compared with the last year. Days sales outstanding went down to 76 days for the year compared with 96 days for the same period last year.
Days inventory outstanding has decreased to 65 days for the year compared with 71 days for the previous year period. At the same time, days payable outstanding went down to 288 days for the year from 314 for the same period last year.
Debt comes down marginally
Occidental Petroleum Corporation has recorded a decline in long-term debt over the last one year. It stood at $6,838 million as on Dec. 31, 2014, down 1.46 percent or $101 million from $6,939 million on Dec. 31, 2013. Total debt was 12.15 percent of total assets as on Dec. 31, 2014, compared with 9.99 percent on Dec. 31, 2013. Debt to equity ratio was at 0.20 as on Dec. 31, 2014, up from 0.16 as on Dec. 31, 2013.
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