March 18 Occidental Petroleum Corp, the
fourth-largest U.S. oil company, expects a $200 million drop in
first quarter earnings from its fourth quarter due to lost oil
and gas sales caused in part by maintenance at a Qatar facility
and pipeline disruptions in Colombia.
Those two events would also result in $100 million of
additional costs in its fiscal first quarter and reduce oil and
gas production by 18,000 barrels of oil equivalent per day
compared with the fourth quarter, according to slides released
by the company on Monday
Adding in production issues in the Middle East/North Africa
region, first-quarter sales volumes would be down by about
40,000 bpd compared with the quarter before, according to the
slides that will accompany Chief Executive Stephen Chazen's
presentation to the Howard Weil energy conference on Tuesday.
The overall reduced sales are equivalent to about 5 percent
of Occidental's fourth-quarter oil and gas production, and will
result in an after-tax $200 million reduction in earnings
compared with the fourth quarter.
Analysts had been expecting a first-quarter net profit of
$1.4 billion, according to the average on Thomson Reuters
Shares of Occidental were trading 50 cents lower at $82.00
in after-hours trading on Monday, having already lost 1.4
percent in the regular session.
Occidental is due to report its first quarter earnings next