Occidental dips after missing on fourth quarter profit expectations

By Liz Moyer

Investing.com -- Occidental Petroleum Corporation (NYSE:OXY) shares dipped in after-hours trading after it missed expectations on profit.

The oil producer reported fourth-quarter adjusted earnings per share of $1.61, compared with expectations for adjusted profit of $1.81 a share. Revenue of $8.3 billion compared to the expected $8.37B expected.

Shares were down 1.7% in late trading.

Occidental said it would start a new $3B share repurchase program after completing a $3B program. It also announced a 38% increase to its common dividend.

CEO Vicki Hollub said: "Our operational success drove the financial achievements that enabled us to complete our $3.0B share repurchase program and deliver substantial balance sheet improvements. Our teams are well positioned to maintain this operational success, as we continue to focus on delivering value for our shareholders in 2023.”

The company reported $2.5B in oil and gas pre-tax income on continuing operations for the fourth quarter, compared with pre-tax income of $3.3B for the third quarter. The fourth quarter results included $46 million of gains on sales of assets. 

“Excluding items affecting comparability, fourth quarter oil and gas income declined due to lower worldwide crude oil and natural gas liquids (NGL) and domestic natural gas prices and higher exploration expenses, partially offset by higher crude oil sales volumes,” Occidental said.