Occidental Petroleum (OXY) reported its fiscal 2025 Q2 earnings on August 6, 2025, showing a significant drop in profitability. The company missed expectations as net income fell 60.0% year-over-year, and earnings per share (EPS) declined 75.5%. The company also reduced its 2025 capital and operating cost guidance, reflecting ongoing efficiency improvements.
Revenue
Total revenue for the quarter declined by 6.1% to $6.46 billion, down from $6.88 billion in the same period a year ago. The decline was driven by a combination of lower production volumes and pricing pressures in the energy sector.
Earnings/Net Income
The company’s EPS dropped to $0.27 in Q2 2025, a sharp 75.5% decrease from $1.10 in Q2 2024. Net income also fell significantly to $468 million, representing a 60.0% year-over-year decline from $1.17 billion, signaling a challenging quarter for profitability.
Price Action
OXY’s stock experienced a modest decline in recent trading periods, falling 1.78% on the latest trading day, 4.21% over the past week, and 1.87% month-to-date, reflecting mixed investor sentiment.
Post-Earnings Price Action Review
The earnings-following strategy of buying OXY after positive results and holding for 30 days yielded a 40.01% return, underperforming the 52.03% benchmark by 12.02%. Despite a Sharpe ratio of 0.31 and a maximum drawdown of 0%, the approach showed 26.70% volatility and an 8.31% CAGR, highlighting a conservative yet modestly effective strategy.
CEO Commentary
CEO Vicki Hollub highlighted continued operational efficiencies, including $500 million in cost reductions, and progress on debt repayment and asset sales. She expressed confidence in the company’s long-term value creation potential through operational execution and strategic growth projects.
Guidance
Occidental reduced the mid-point of its 2025 capital guidance by $100 million and international operating costs by $50 million. The company has repaid $3.0 billion in debt year-to-date and announced $950 million in additional divestitures. Free cash flow before working capital was $0.7 billion, and production exceeded guidance at 1,400 Mboed.
Additional News
The company released its second-quarter results on August 7, 2025, with the official announcement available on its website. A full report was temporarily inaccessible due to technical issues. No significant M&A or executive changes were disclosed in the immediate three-week period post-earnings.
Comments
No comments yet