Occidental's earnings rise 26 percent

LOS ANGELES -- Occidental Petroleum said its third-quarter earnings rose 26 percent from the same quarter a year ago.

Occidental, an oil and natural gas company based in Los Angeles, said profit from operations was $211 million, or 54 cents a share, up from $168 million, 46 cents, in the year-ago quarter.

The company was expected to earn 44 cents a share based on the average estimate of 11 analysts surveyed by IBES International. The company said it will take a $54 million charge against third- quarter earnings to compensate two top executives for its changes in their pay structure, resulting in net income of $157 million for the 1997 quarter. Last year, $140 million was added to earnings from reduced tax liabilities and litigation, offset by a $105 million charge to write down an oil and gas project and a $9 million tax charge, bringing net income to $194 million. Revenue fell to $2.6 billion, from $2.8 billion in the year-ago quarter. Lower exploration and other costs more than offset the decrease in sales, the company said. "The recently announced agreement to acquire the 1 billion barrel equivalent Elk Hills Field and the proposed divestiture of MidCon should enable Occidental to significantly increase its earning and cash flow in the future," said Ray Irani, chairman and chief executive, Occidental.

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