Occidental Petroleum Corp. (NYSE:OXY)

Income (loss) from continuing operations before income taxes

The segment experienced a significant loss in 2020, with a negative figure of -9632 million USD. However, this figure improved considerably in 2021, turning positive to 4145 million USD. The upward trend continued sharply through 2022, reaching a peak of 12803 million USD. In 2023 and 2024, the income before income taxes declined but remained positive at 6240 million USD and 5214 million USD, respectively. This indicates a recovery after the loss in 2020, followed by a moderate decrease in profitability in the last two years.

Net sales

Net sales showed a consistent upward trend from 13066 million USD in 2020 to 27165 million USD in 2022, indicating strong revenue growth over these years. However, sales decreased notably in 2023 to 21284 million USD before slightly increasing again in 2024 to 21705 million USD. While revenues remain higher than in the initial years, the decline in 2023 suggests some volatility or external factors impacting sales.

Segment profit margin

The segment profit margin was deeply negative in 2020 at -73.72%, reflecting the substantial loss in that year. Following this, the margin improved dramatically in 2021 to 21.88%, further increasing to 47.13% in 2022. However, the margin declined in both 2023 and 2024, to 29.32% and 24.02%, respectively. Although profitability remains strong compared to 2020, the downward trend in margin since 2022 indicates a reduction in operational efficiency or increased costs relative to sales.

Income (loss) from continuing operations before income taxes

The income before income taxes showed a significant increase from 664 million USD in 2020 to a peak of 2,508 million USD in 2022. However, this figure declined in the subsequent years, reaching 1,124 million USD by the end of 2024. Despite the decrease after 2022, the value in 2024 remains substantially higher than in 2020, indicating overall growth over the five-year period.

Net sales

Net sales increased steadily from 3,733 million USD in 2020 to a high of 6,757 million USD in 2022. After this peak, net sales declined to 4,923 million USD by 2024. The peak in 2022 also corresponds with the highest income before taxes during the observed period. The decline in net sales post-2022 suggests a contraction in revenue generation, though sales in 2024 still exceed the initial 2020 level.

Segment profit margin

The segment profit margin demonstrated an overall improving trend from 17.79% in 2020 to a peak of 37.12% in 2022. Following 2022, the margin decreased to 22.83% by 2024. Despite this reduction, the margin in 2024 remains higher than at the beginning of the period. The profit margin trend closely follows the patterns seen in income and net sales, with the highest margin and income coinciding with the peak sales year.

The financial data for the "Midstream and marketing" segment shows a notable shift in performance across the years analyzed. Initially, the segment experienced a significant loss before income taxes in 2020 at a level of -4,175 million US dollars. However, from 2021 onwards, this figure reversed to positive territory and showed a generally upward trend, culminating in a value of 580 million US dollars in 2024. This indicates a substantial recovery and improvement in profitability over this period.

Net sales exhibited considerable fluctuation. Starting at 1,768 million US dollars in 2020, sales increased appreciably to 4,136 million US dollars by 2022. Subsequently, there was a sharp decline to 2,551 million US dollars in 2023, followed by another significant reduction to 962 million US dollars in 2024. These variations suggest volatility or changing conditions affecting sales volume or pricing in the segment.

Examining the segment profit margin percentage, there was a dramatic change from a deeply negative margin of -236.14% in 2020 to positive margins from 2021 onwards. The margin stabilized within a narrow range of approximately 0.94% to 8.98% between 2021 and 2023, before surging to 60.29% in 2024. This sharp rise in margin in the final year indicates a marked improvement in segment profitability efficiency, possibly due to cost management, pricing strategies, or structural changes within the segment.

Income (Loss) from Continuing Operations Before Income Taxes

Initial large loss turned into consistent profitability, reflecting recovery and improved operational results.

Net Sales

Sales volumes or revenues were variable with a peak in 2022, followed by steep declines in subsequent years, indicating market or operational variability.

Segment Profit Margin

Margin improvement from severe negative levels to a substantial positive margin signals successful turnaround efforts and enhanced profitability by 2024.

Income (loss) from continuing operations before income taxes

There is a significant volatility in the income from continuing operations before income taxes over the observed periods. In 2020, this figure reflects a substantial loss of -9,632 million USD. This trend reverses sharply in 2021 with a positive income of 4,145 million USD, followed by a strong increase to 12,803 million USD in 2022. However, the income decreases in the subsequent years, registering 6,240 million USD in 2023 and 5,214 million USD in 2024. Despite the decline from the 2022 peak, the values from 2021 onward indicate a recovery and profitability compared to the loss in 2020.

Total assets

Total assets show a downward trend from 62,931 million USD in 2020 to 53,786 million USD in 2023. This decline signifies a reduction in asset base over four years. However, in 2024, the assets increase sharply to 63,596 million USD, surpassing the initial value reported in 2020. This fluctuation suggests periods of asset divestiture or depreciation, followed by asset acquisitions or revaluation in the latest year.

Segment ROA (Return on Assets)

The segment return on assets exhibits a pattern consistent with the income and asset trends. Initially, the ROA is deeply negative at -15.31% in 2020, reflective of operating losses relative to assets. Subsequently, the ROA turns positive in 2021 at 7.38%, indicating improved efficiency and profitability. This upward progression continues markedly in 2022 with a peak of 23.68%, suggesting highly effective asset utilization. However, there is a decline in ROA in 2023 to 11.6% and further to 8.2% in 2024, revealing a reduction in return efficiency though remaining positive. The pattern implies strong recovery and high asset productivity followed by a moderation in profitability.

Income (loss) from continuing operations before income taxes

The income before income taxes exhibited a significant increase from 664 million US dollars in 2020 to a peak of 2,508 million US dollars in 2022. Following this peak, there was a notable decline to 1,531 million US dollars in 2023 and a further decrease to 1,124 million US dollars in 2024. This indicates a period of strong growth up to 2022, followed by a downward trend in the subsequent years.

Total assets

Total assets showed a generally increasing trend over the five-year period. Beginning at 4,326 million US dollars in 2020, assets increased to 4,671 million US dollars in 2021, then slightly decreased to 4,558 million US dollars in 2022. Thereafter, total assets rose again to 4,682 million US dollars in 2023 and further to 5,122 million US dollars in 2024. This suggests a gradual expansion of asset base with a minor dip in 2022.

Segment Return on Assets (ROA)

The segment return on assets demonstrated a strong growth from 15.35% in 2020 to a high of 55.02% in 2022. After this peak, ROA decreased significantly to 32.7% in 2023 and then further to 21.94% in 2024. Despite this decline post-2022, the ROA remains above the initial 2020 figure, indicating improved efficiency in asset utilization compared to the start of the period.

Overall Observations

The data reveals a period of robust performance and growth reaching its zenith in 2022 for both income and segment ROA. However, subsequent years show a downward correction in profitability and returns, although the asset base continues to expand steadily. This could suggest market or operational factors impacting earnings and efficiency after 2022, while the company continues to invest or maintain its asset holdings.

Income (loss) from continuing operations before income taxes

The segment experienced a significant turnaround from a substantial loss of $4,175 million in 2020 to positive income levels in subsequent years. In 2021, income rebounded sharply to $257 million, maintaining modest positive figures of $273 million in 2022 and $24 million in 2023, before rising to $580 million in 2024. This indicates a recovery trend with some fluctuations but an overall positive trajectory.

Total assets

Total assets showed a consistent upward trend over the five-year period, increasing from $9,856 million in 2020 to $13,641 million in 2024. The asset base grew steadily each year, reflecting investment growth or asset accumulation within the segment.

Segment ROA (Return on Assets)

Return on assets mirrored the income recovery with an improvement from a negative return of -42.36% in 2020 to positive returns in all subsequent years. ROA increased to 2.31% in 2021 and remained relatively steady at 2.26% in 2022. It declined notably to 0.18% in 2023, indicating reduced efficiency or profitability during that year, before rising again to 4.25% in 2024, the highest level in the period observed.

Overall, the segment shows a significant recovery from losses in 2020, with increasing asset levels and generally improving profitability and asset efficiency metrics. However, the dip in ROA in 2023 suggests some volatility in operational performance despite positive income levels. The rebound in 2024 highlights a strengthening financial position and improved utilization of assets within the segment.

Net Sales

Net sales exhibited a generally increasing trend from 2020 through 2022, rising from 13,066 million US dollars in 2020 to a peak of 27,165 million US dollars in 2022. However, in the subsequent periods of 2023 and 2024, net sales declined to 21,284 million and then slightly increased to 21,705 million US dollars, indicating some volatility and a partial retracement after the peak year of 2022.

Total Assets

Total assets decreased steadily from 62,931 million US dollars at the end of 2020 to a low point of 53,786 million US dollars in 2023. This represents a reduction over these years, suggesting asset divestitures, depreciation, or other factors reducing asset base. Notably, in 2024, total assets rebounded to 63,596 million US dollars, recovering and slightly exceeding the initial 2020 level, which could imply asset acquisitions or revaluation effects.

Segment Asset Turnover

Segment asset turnover, defined as net sales divided by total assets, displays an increasing trend from 0.21 in 2020 to a peak of 0.50 in 2022, indicating improved efficiency in utilizing assets to generate sales during this period. Following this peak, the ratio declined in the subsequent years to 0.40 in 2023 and 0.34 in 2024, suggesting diminished asset utilization efficiency relative to peak performance, aligning with the drop in net sales and partial recovery in asset base.

Net Sales

Net sales showed a notable upward trend from 2020 to 2022, increasing from 3,733 million US dollars to a peak of 6,757 million US dollars. However, the following years saw a decline, with sales dropping to 5,321 million in 2023 and further decreasing to 4,923 million by the end of 2024. This suggests a period of strong growth followed by a significant contraction in sales volume or pricing in the latter years.

Total Assets

Total assets remained relatively stable but gradually increased over the period. Starting at 4,326 million US dollars in 2020, assets experienced slight fluctuations but showed a consistent upward movement from 4,682 million in 2023 to 5,122 million in 2024. This trend indicates ongoing investment or accumulation of assets despite fluctuations in sales.

Segment Asset Turnover

The segment asset turnover ratio increased from 0.86 in 2020 to a high of 1.48 in 2022, corresponding with the peak in net sales. This suggests improved efficiency in utilizing assets to generate sales during this period. However, the ratio declined to 1.14 in 2023 and further to 0.96 in 2024, reflecting the combination of declining sales and increasing asset base, which resulted in reduced efficiency.

Net sales

Net sales experienced notable fluctuations over the observed period. Starting at 1,768 million US dollars in 2020, there was a significant increase to 2,863 million in 2021, followed by a further rise to 4,136 million in 2022. However, sales declined sharply to 2,551 million in 2023 and dropped even further to 962 million in 2024. This pattern suggests cyclical volatility or external factors impacting revenue generation within this segment.

Total assets

Total assets showed a consistent upward trend, increasing steadily from 9,856 million US dollars in 2020 to 13,641 million in 2024. The growth in assets reflects ongoing investments or capital additions within the segment, despite the uneven net sales performance.

Segment asset turnover

Segment asset turnover, measuring the efficiency of asset use in generating sales, initially increased from 0.18 in 2020 to 0.26 in 2021 and further to 0.34 in 2022, indicating improving operational efficiency during this period. However, turnover declined markedly in the subsequent years to 0.19 in 2023 and then to 0.07 in 2024. This decline correlates with the net sales drop and the rising asset base, suggesting decreasing asset utilization effectiveness in generating revenue in the latter years.

Property, plant and equipment additions

The value of property, plant, and equipment additions demonstrates a consistent upward trend over the five-year period. Beginning at $2,279 million in 2020, the additions increased modestly to $2,458 million in 2021, followed by a more significant rise to $3,898 million in 2022. This growth accelerated further in 2023, reaching $5,028 million, and continued to increase to $5,408 million in 2024. This pattern indicates a steadily growing investment in capital assets within the oil and gas segment.

Depreciation, depletion and amortization

This expense category shows a fluctuating trend. It increased slightly from $7,414 million in 2020 to $7,741 million in 2021, then experienced a notable decline to $6,179 million in 2022. In the subsequent years, depreciation, depletion, and amortization remained relatively stable, with values of $6,112 million in 2023 and a slight increase to $6,565 million in 2024. The decline after 2021 may suggest changes in asset base composition or adjustments in depreciation policies aligned with the shifts in capital expenditures.

Segment capital expenditures to depreciation ratio

This ratio illustrates the relationship between capital expenditures and depreciation over the years. It starts at a low of 0.31 in 2020 and slightly increases to 0.32 in 2021, indicating that capital spending was substantially lower than depreciation charges during these years. The ratio then nearly doubles to 0.63 in 2022 and further rises sharply to 0.82 in both 2023 and 2024. This trend suggests a strategic shift towards increased investment relative to the depreciation of assets, reflecting an intensified focus on growth or asset renewal within the oil and gas segment.

Property, plant and equipment additions

A consistent increase is observed in the capital invested in property, plant, and equipment over the analyzed period. The additions rose from $261 million in 2020 to $718 million in 2024, indicating a clear upward investment trend, particularly with a notable acceleration from 2022 onwards.

Depreciation, depletion and amortization

The depreciation, depletion, and amortization expenses remained relatively stable throughout the years, fluctuating slightly around the mid-300 million dollar mark. The values ranged from $343 million to $370 million, showing no significant upward or downward trend during this period.

Segment capital expenditures to depreciation ratio

This ratio shows an increasing trend from 0.73 in 2020 to 1.98 in 2024. The rise suggests that capital expenditures have increasingly outpaced depreciation expenses, particularly from 2022 onward. This shift signifies growing investment activities in the segment, potentially aimed at expanding or upgrading asset bases beyond the rate at which assets are depreciated or depleted.

The segment data for "Midstream and marketing" reveals notable trends in capital investment and asset consumption over the reported periods. The additions to property, plant, and equipment exhibit a consistent and significant upward trajectory from 50 million US dollars in 2020 to 941 million US dollars in 2024. This progression reflects a substantial increase in investment, particularly marked by more than doubling from 2022 to 2023, and continuing with strong growth into 2024.

In contrast, depreciation, depletion, and amortization expenses show minimal fluctuation, remaining relatively stable within a narrow range from 312 million US dollars in 2020 to 329 million US dollars in 2024. This stability suggests that the expense related to the wear and consumption of assets has not significantly changed despite the ramp-up in capital additions.

The ratio of segment capital expenditures to depreciation distinctly emphasizes the rising investment intensity relative to asset consumption. Starting from a low base of 0.16 in 2020, this ratio escalates steadily to 2.86 by 2024. The increase above 1.0 from 2022 onward indicates that capital expenditures are growing substantially faster than the depreciation expenses, signaling a phase of asset base expansion and potential capacity growth within the segment.

Property, plant and equipment additions

Increased substantially each year, reflecting intensified capital investment efforts and likely expansion or modernization initiatives.

Depreciation, depletion and amortization

Remained relatively flat, indicating consistent asset consumption costs despite the increasing capital expenditure.

Segment capital expenditures to depreciation ratio

Rose sharply, highlighting a strategic shift towards aggressive capital spending that significantly exceeds asset depreciation, suggesting growth and asset accumulation in the segment.