Occidental Lower After Results Lag Expectations

Occidental Petroleum shares fell after the oil major posted a wider-than-expected net loss of $1.41 a share for the fourth quarter.
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Occidental Petroleum  (OXY) - Get Report shares fell in after-hours trading Monday after the oil giant reported a wider-than-expected loss for the fourth quarter.

Occidental posted a net loss of $1.31 billion, or $1.41 a share, narrowed from a loss of $1.34 billion, or $1.50, in the year-earlier period. The latest per-share figure was worse than the FactSet analyst consensus of a 53-cent loss.

The company registered a 78-cent adjusted loss per share for the latest quarter, widened from 30 cents a year earlier and exceeding the analyst consensus of a 58-cent loss.

Revenue was $3.35 billion in the latest quarter, down from $7.14 billion a year earlier  Again, the analyst forecast was for better: $4.32 billion.

Occidental and all the other oil companies were hammered by the COVID pandemic, which stifled demand for the commodity. But the oil-price rebound over the past few months has put life back into oil company stocks.

Occidental recently traded at $25.20, down 4.8% in after-hours trading. But it rose 4.1% during the regular session and has jumped 96% in the past three months through Monday’s close. To be sure, the stock remains down 37% from a year earlier.

“We remain committed to strengthening our balance sheet and transitioned into 2021 with an improved financial position by achieving our 2020 divestiture target, reducing debt and successfully extending debt maturities,” Chief Executive Vicki Hollub said in the statement .

“In the fourth quarter, our businesses again outperformed. … We continue to make progress on our debt structure and have significantly exceeded our cost savings targets while delivering operational excellence across our business.”