Occidental Petroleum 2001 Annual Report Download - page 25

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SELECTED REVENUE ITEMS
In millions 2001 2000 1999
=========================================== ======== ======== ========
Net sales $ 13,985 $ 13,574 $ 7,820
Interest, dividends and other income $ 223 $ 263 $ 913
Gains(losses) on disposition of assets, net $ 10 $ 639 $ (13)
(Loss)income from equity investments $ (92) $ 67 $ 41
------------------------------------------- -------- -------- --------
The increase in sales in 2001, compared to 2000, primarily reflected higher
natural gas prices and higher oil and gas trading revenue, in turn, due to
higher oil and gas trading volumes and higher gas prices, partially offset by
lower crude oil and chemical prices. The increase in sales in 2000, compared
with 1999, primarily reflected higher worldwide crude oil and natural gas
prices, higher domestic oil production, mainly from the Altura and THUMS
acquisitions, higher oil and gas trading activity and the inclusion of the full
year revenues from OxyVinyls, partially offset by lower international oil
production.
Interest, dividends and other income in 2001 and 2000 included interest
income on the notes receivable from the Altura partners of $102 million and $106
million, respectively. Interest, dividends and other income in 1999 included the
favorable litigation settlement of $775 million.
Gains on disposition of assets in 2001 included the pre-tax gain of $454
million on the sale of the interest in the Tangguh LNG project and the pre-tax
loss on the sale of an interest in the subsidiary that leased a pipeline to
Occidental's former MidCon subsidiary of $459 million. Gains on disposition of
assets in 2000 included the pre-tax gain of $493 million on the sale of the
CanadianOxy investment, the pre-tax gain of $61 million on the partial sale of
the Gulf of Mexico assets, the pre-tax gain of $63 million on the receipt of
contingency payments related to a prior-year sale of a Dutch North Sea
subsidiary and the pre-tax gain of $34 million on the sale of the Durez
business.
The loss from equity investments in 2001, compared with income from equity
investments in 2000, was primarily due to a loss of $89 million from the
Equistar equity investment in 2001. The increase in income from equity
investments in 2000, compared with 1999, was due to higher earnings at Equistar.
CONSOLIDATED OPERATIONS - EXPENSES
SELECTED EXPENSE ITEMS
In millions 2001 2000 1999
=================================== ======== ======== ========
Cost of sales $ 9,488 $ 8,963 $ 5,269
Selling, general and administrative
and other operating expenses $ 675 $ 691 $ 645
Write-down of assets $ 415 $ 180 $ 212
Minority interest $ 143 $ 185 $ 58
Exploration expense $ 184 $ 94 $ 75
Interest and debt expense, net $ 392 $ 518 $ 498
----------------------------------- -------- -------- --------
The increase in cost of sales in 2001, compared with 2000, primarily
reflected higher costs related to increased oil and gas trading volumes, higher
prices for gas trading and higher production volumes. The increase in cost of
sales in 2000, compared with 1999, primarily reflected the higher costs related
to oil and gas trading, higher domestic oil production volumes and higher
raw-material and energy costs in the chemical segment.
Selling, general and administrative and other operating expenses decreased
in 2001, compared to 2000, due mainly to a decrease in chemical selling costs.
Selling, general and administrative and other operating expenses increased in
2000, compared to 1999, due to the increase in oil and gas production taxes
resulting from higher oil and gas prices and the acquisition-related higher
production, partially offset by lower other costs.