When Occidental Petroleum Corp. announced Jan. 29 that fourth-quarter profit fell nearly 70%, Chairman and CEO Ray Irani said the 2008 IW 50 Best Manufacturer would continue investing in the its future growth "despite volatile commodity prices."
Indeed, the company said March 16 that it formed a joint operating company with Mubadala Development Co. in Abu Dhabi and the National Oil and Gas Authority of Bahrain to increase oil production by 100,000 barrels of oil per day in the Bahrain Field.
The new company is in the process of implementing a development plan to increase the Bahrain Field's oil and gas production. During this initial phase, Occidental Petroleum and Mubadala will have exclusive rights to finalize negotiations on a 20-year development and production sharing agreement for the oil field. The negotiations are expected to be completed by the end of April, Occidental said.
At A Glance
Occidental Petroleum Corp.
Los Angeles, Calif.
Primary Industry: Petroleum & Coal Products
Number of Employees: 9,700
2007 In Review
Revenue: $20 billion
Profit Margin: 26.98%
Sales Turnover: 0.55
Inventory Turnover: 7.64
Revenue Growth: 10.20%
Return On Assets: 16.70%
Return On Equity: 28.15%
At the same time Occidental sought new strategic opportunities, the company cut perks for Irani, who is reported to be one of the highest-paid chief executives in the world.
Irani's annual compensation fell to $60.5 million in 2008 compared with $77.6 million the year before, according to a Securities and Exchange Commission filing. The drop was primarily related to a decrease in option awards, which totaled $15.7 million in 2008 compared with $32.3 million the previous year.
For the year, the company's profit increased to $6.9 billion, or $8.35 per share, compared with $5.4 billion, or $6.44 a share.
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