News wire — Occidental Petroleum Corp Chief Executive Vicki Hollub said on Friday that the company is ready to reduce spending this year if oil markets continue to be roiled by global coronavirus fears.
“As global commodity prices have declined sharply in recent days, we are prepared to reduce our spending if the current environment does not improve,” Hollub said on a call with analysts. “We are monitoring the situation closely and retain the flexibility to adjust our budget if needed.”
Occidental plans spending of $5.2 billion to $5.4 billion, well below the $6.36 billion it spent last year.
It reported a quarterly loss on a more than $1.7 billion in impairment and other charges on Thursday.
It has been aggressively cutting costs by laying off staff and selling assets to pay down its $38.54 billion debt pile following its $38 billion acquisition of Anadarko Petroleum.
Shares were down 4.5% on Friday morning to $30.69.
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- Reuters
