By Micah Maidenberg
Occidental Petroleum Corp. recorded $6.6 billion in impairment charges for the second quarter, driving up losses at the oil producer, which is grappling with the effects of the Covid-19 pandemic on global crude markets.
The company posted a net loss of $8.35 billion, or $9.12 a share, for the second quarter, compared with a profit of $635 million, or 84 cents a share, for the same period last year.
Occidental on Monday said the impairments included $5.2 billion for continuing operations for its oil and gas businesses, and $1.4 billion in operations it has classified as discontinued.
"Second quarter results were impacted by the steep decline in oil prices due to the continued significant drop in oil demand as governments around the world implemented measures to contain the spread of Covid-19," Occidental said regarding its oil and gas unit.
The adjusted loss for the quarter was $1.76 a share, worse than the $1.68 a share loss analysts expected..
Total revenue fell, year over year, to $2.98 billion from $4.48 billion.
Occidental has been cutting costs and in July raised $2 billion in senior unsecured debt and completed a debt-tender offer to retire $2 billion of debt that was scheduled to mature next year.
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