Occidental Petroleum Corporation (OXY) has reported a 50 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $117 million, or $0.15 a share in the quarter, compared with $78 million, or $0.10 a share for the same period last year.
Revenue during the quarter surged 30.56 percent to $2,978 million from $2,281 million in the previous year period. Gross margin for the quarter expanded 828 basis points over the previous year period to 52.12 percent. Operating margin for the quarter period stood at positive 8.26 percent as compared to a negative 23.50 percent for the previous year period.
Operating income for the quarter was $246 million, compared with an operating loss of $536 million in the previous year period.
"Our focus remains on areas that generate the best returns and we are seeing improvements in margins across all of our businesses," said president and chief executive officer Vicki Hollub. "Permian Resources continues to be a growth engine for our company, with a 5 percent improvement in production this quarter, reflecting increased drilling activity and well productivity in the Delaware Basin."
Operating cash flow improves significantly
Occidental Petroleum Corporation has generated cash of $652 million from operating activities during the quarter, up 369.06 percent or $513 million, when compared with the last year period.
The company has spent $819 million cash to meet investing activities during the quarter as against cash outgo of $637 million in the last year period.
The company has spent $572 million cash to carry out financing activities during the quarter as against cash outgo of $1,270 million in the last year period.
Cash and cash equivalents stood at $1,494 million as on Mar. 31, 2017, down 52.96 percent or $1,682 million from $3,176 million on Mar. 31, 2016.
Working capital decreases marginally
Occidental Petroleum Corporation has witnessed a decline in the working capital over the last year. It stood at $1,386 million as at Mar. 31, 2017, down 1.77 percent or $25 million from $1,411 million on Mar. 31, 2016. Current ratio was at 1.20 as on Mar. 31, 2017, down from 1.21 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 84 days for the quarter from 23 days for the last year period. Days sales outstanding went down to 110 days for the quarter compared with 115 days for the same period last year.
Days inventory outstanding has decreased to 32 days for the quarter compared with 70 days for the previous year period. At the same time, days payable outstanding went up to 225 days for the quarter from 208 for the same period last year.
Debt increases substantially
Occidental Petroleum Corporation has witnessed an increase in total debt over the last one year. It stood at $9,822 million as on Mar. 31, 2017, up 29.10 percent or $2,214 million from $7,608 million on Mar. 31, 2016. Total debt was 23.13 percent of total assets as on Mar. 31, 2017, compared with 18.11 percent on Mar. 31, 2016. Debt to equity ratio was at 0.47 as on Mar. 31, 2017, up from 0.32 as on Mar. 31, 2016.
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