Oxy’s Profit, Revenue Rise 19%

Occidental Petroleum Corp. said Thursday that both profit and revenue jumped 19% in the fourth quarter, spurred by increased production and higher crude oil and natural gas prices.

The Westwood-based company said net income rose to $382 million, or 97 cents a share, from $322 million, or 84 cents, a year earlier.

Revenue rose to $2.37 billion from $1.99 billion. Despite spending less on capital projects during the quarter, Occidental boosted worldwide production of oil and natural gas by 9%.

Wall Street analysts seemed impressed with the results, but the strong earnings performance failed to move the stock price Thursday.

Occidental’s shares fell 73 cents to $44.27 in New York Stock Exchange trading, reflecting a broad dip in oil stocks. Oxy’s stock has risen about 60% in the last year.

Analyst Fadel Gheit of Oppenheimer & Co. called Occidental’s operating performance “remarkable.”

However, with oil prices running high at around $35 a barrel, he said, prices soon will begin to fall, and that put pressure on Oxy’s stock price Thursday.

“Investors are saying this party is lasting a lot longer than we had hoped, and it’s time to head for the exits,” said Gheit, who rates the company’s shares “neutral” and doesn’t own any.

Occidental benefited from higher commodity prices worldwide during the quarter, selling oil in the United States for an average of $28.47 a barrel, up 12% from a year earlier, and natural gas for $4.42 per 1,000 cubic feet, an increase of more than 31%.

Boosted by higher output from projects in the U.S. and Ecuador, the company’s worldwide production grew to the equivalent of 565,000 barrels of oil a day, up from 518,000.

Oxy President Dale Laurance said the company expected to meet its 2004 forecast of producing the equivalent of 575,000 barrels a day.

For the full year, Occidental’s net income soared to $1.5 billion, or $3.93 a share, a 54% increase over 2002 profit of $989 million, or $2.61. Sales rose 27% to $9.3 billion.