Occidental Petroleum (OXY recently reported a significant shift in its bottom line for the fiscal year 2024, with net income attributable to common stockholders falling to $2.364 billion. This represents a substantial +49.38% decrease compared to the $4.7 billion reported for the fiscal year 2023, according to data sourced from Monexa AI based on company filings. The decline occurred despite a relatively stable revenue picture, which saw a more modest +5.42% decrease from $28.26 billion in FY 2023 to $26.73 billion in FY 2024. This divergence between top-line and bottom-line performance highlights the influence of operational costs, non-core income/expense items, and specific one-time charges on the company's profitability in the past year. Investors are closely watching how management plans to address these factors while navigating the inherent volatility of the energy market and pursuing strategic growth initiatives.
This financial performance comes amidst a complex global energy landscape marked by fluctuating commodity prices and increasing emphasis on energy transition technologies. Occidental Petroleum's strategy has increasingly focused on optimizing its core upstream assets, primarily in the Permian Basin, while simultaneously investing in emerging areas like Direct Air Capture (DAC). The interplay between these traditional and forward-looking ventures, coupled with the company's approach to debt management and shareholder returns, forms the crux of its investment narrative heading into 2025.
Recent Financial Performance and Key Drivers#
Occidental Petroleum's financial results for fiscal year 2024 showed a notable contraction in profitability despite robust operational performance in key areas. The reported net income of $2.38 billion (using the income statement figure which may differ slightly from the attributable common stockholders figure cited elsewhere) for the year ending December 31, 2024, was down from $4.7 billion in the prior year, a decrease of +49.38% (Monexa AI data). This significant reduction in net income stands in contrast to the relatively minor +5.42% decline in revenue, which moved from $28.26 billion in FY 2023 to $26.73 billion in FY 2024 (Monexa AI data).
The disparity between revenue and net income trends can be attributed to several factors impacting the cost structure and non-operational results. While the cost of revenue saw a decrease from $18.15 billion in FY 2023 to $17.18 billion in FY 2024, a reduction of approximately +5.34%, operating expenses increased from $3.695 billion (implied from SG&A and total operating expenses in the draft) to $4.4 billion (Monexa AI data). A particularly impactful shift was noted in