June 2008 -- Occidental Petroleum Corp. announced record net income of $5.4 billion for 2007 compared with
$4.2 billion in 2006. Net income for fourth-quarter 2007 rose to $1.5 billion from $930 million
a year earlier. Occidental Petroleum achieved the highest full-year net income in its history
and another record quarter for core results according to the company's chairman and CEO Dr. Ray
R. Irani.
"Driven largely by record oil and gas earnings, this achievement reflects the continued success
of our strategy to focus on profitable, long-lived oil and gas assets, a disciplined investment
philosophy and maintaining a strong balance sheet," said Irani in a company statement. "We are
pleased with the 25.7% return on equity for the full year of 2007."
Average daily oil and gas production rose 25,000 BOE per day in 2007, with segment earnings
climbing $850 million to $8.3 billion. Oil and gas core results also increased by $850 million
to $7.7 billion, which reflected the $1.3 billion from higher crude oil and natural gas prices
and increased production. Occidental's chemical segment earned dropped $305 million in 2007 as a
result of lower margins for polyvinyl chloride.
"While high commodity prices clearly have boosted earnings throughout the industry, [Occidental]
has consistently produced top-quartile results in capturing the value from higher prices on an
equivalent barrel basis and delivering it to the bottom line," Irani said.
