Earnings Analysis for OXY

Revenue Analysis

Total Revenue shows a slight fluctuation over the observed quarters. In Q1 2023 (2023-03-31), total revenue was $7.225 billion, incrementally increasing to $7.158 billion in Q3 and then slightly bigger at $7.172 billion by the end of 2023. Operating Revenue follows a similar trend with $7.115 billion in Q1, peaking to $7.338 billion in Q4.
Gross Profit also shows an improving trend across the quarters, starting at $2.796 billion in Q1, and moving up to approximately $2.414 billion by the end of the year. This growth in gross profit, while operating revenue increased, suggests improvement in operational efficiency.

Cost Management

Cost of Revenue saw a peak in early 2023 but decreased through the year, from $4.45 billion in Q1 to $4.758 billion by the end of 2023. Operating Expense increased from $957 million in Q1 to $1.082 billion in Q4. Meanwhile, Total Expenses increased from $5.386 billion in Q1 to $5.84 billion by the end of 2023, likely indicating rising costs of business operations and potential investments in capacity or efficiency.

Profitability Analysis

EBITDA began at $3.693 billion in Q1, saw a downturn mid-year, but ended higher at $3.529 billion by the end of 2023. Operating Income mirrored these trends, ending the period at $1.332 billion. Pretax Income enhanced from $1.734 billion in Q1 to $1.559 billion by Q4 2023, and Net Income presented a mixed trend but culminated at $1.198 billion at year-end. The data indicate solid profitability that, while varied, showcased overall stable to slightly growing profitability measures towards the end of 2023.

Cash Flow Indicators

Reconciled Depreciation remained remarkably stable throughout the year, suggesting consistent investment in fixed assets and depreciation policies. Interest Expense increased from $238 million in Q1 to $247 million by Q4 2023, highlighting increased financing costs. This could imply either new debt or restructuring of existing obligations.

Taxation

Tax Rate For Calcs ranged from 0.27 in Q1 to 0.231 by Q4, indicating a generally declining tax rate across the year. Tax Provision was substantial, increasing from $471 million in Q1 to $361 million by Q4. Tax Effect of Unusual Items showed varied impacts from such items, sometimes leading to additional tax burdens or benefits.

Shareholder Metrics

Diluted EPS and Basic EPS improved steadily across the year, starting at $0.63 and $0.68 respectively in Q1 and rising to $1.08 and $1.16 by the end of the year. This suggests a strong return to shareholders that grew as the year progressed.Average Shares indicated a slight increase in outstanding shares, from approximately 897.5 million in Q1 to about 950.1 million by the year’s end. Net Income Available to Common Stockholders grew from $983 million in Q1 to $1.023 billion by Q4 2023.

Conclusion

OXY demonstrated positive trends in revenue and profitability across the year 2023, despite facing fluctuations in certain areas. Increasing operating expenses and interest expenses are areas to watch, which may indicate strategic investments or potential challenges in cost management. Shareholder returns have improved, marked by growing EPS and stable net income available to common stockholders. It would be advisable for OXY to continue monitoring their cost structures and potential tax liabilities linked to unusual items while maintaining a strategic focus on operational efficiency and market expansion to ensure sustained growth.