Occidental Petroleum Corp.’s second-quarter loss tapered sharply on a better-than-expected sales growth driven by the oil and gas price recovery.The U.S. shale producer reported a second-quarter loss, after preferred stock dividends, of $97 million, or 10 cents a share. On an adjusted basis, it reported a profit of 32 cents a share.
Net sales rose to $5.96 billion from $2.93 billion a year earlier. Analysts surveyed by FactSet expected a break-even profit, or an adjusted profit of a penny a share, and $5.87 billion in sales. Trading volume (15.1 M) remained 1.9 million below its 50-day average volume of 17.1 M.The stock’s rise snapped a three-day losing streak.
The company said it produced a free cash flow of about $2 billion and said that, excluding items affecting comparability, results improved from the previous quarter due to higher commodity prices and sales volumes. Chief Executive Officer Vicki Hollub said that the second quarter operational performance continued to drive robust financial performance, resulting in our highest level of free cash flow in over a decade for the second consecutive quarter.
Occidental Petroleum Corp shares rebounded 2.48% to $26.43 Tuesday. This proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX rising 0.82% to 4,423.15 and the Dow Jones Industrial Average DJIA rising 0.80% to 35,116.40.Occidental Petroleum Corp. closed $7.07 below its 52-week high ($33.50), which the company reached on July 1st. The stock outperformed some of its competitors Tuesday, as Exxon Mobil Corp. XOM rose 1.08% to $58.20, Chevron Corp. CVX rose 0.95% to $102.60, and ConocoPhillips COP rose 2.28% to $56.64.