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ConocoPhillips’ quarterly profits increase
Published October 23, 2008
OLD OCEAN — The nation’s third-largest refiner continued to see strong profits from its oil and natural gas products despite a volatile market.
ConocoPhillips earned about $5.18 billion for the third quarter, an increase of about $1.5 billion from last year’s third quarter, the company announced Wednesday. Third-quarter revenues were $70 billion this year compared to $46.1 billion last year.
The Houston-based company reported third-quarter profits rose 41 percent on higher oil and natural gas prices that more than offset the impact of two Gulf Coast hurricanes on its business and beat stock market troubles. Dividends were at $3.39 a share compared to $2.23 for the same quarter in 2007.
“Our U.S. operations were impacted by Hurricanes Gustav and Ike during the quarter, but despite these impacts, our overall operating performance was good,” Jim Mulva, ConocoPhillips chairman and chief executive officer, said in a company press release.
The company has a refinery in Old Ocean that provides about 900 positions locally.
ConocoPhillips’ exploration and production department saw the largest increase in the third quarter. It earned $3.928 billion this year compared to $2.082 billion last year.
It’s midstream department saw a net income of $173 million this year opposed to $104 million last year.
The refining and marketing department saw a decrease in profit this year as opposed to last year. Net income in the third quarter was $849 million this year compared to $1,307 million last year.
The company reasoned the drop was because of lower net benefit from the company’s asset rationalization efforts, the absence of a third-quarter 2007 German tax legislation benefit and lower refining volumes. Refining was affected by lost time at Gulf Coast plants that were closed by the hurricanes.
Analysts polled by Thomson Reuters had been expecting earnings, on average, of $3.06 per share.
Yet company shares tumbled Wednesday as investors watched some companies outside the oil sector report worrisome corporate results.
Shares of ConocoPhillips fell 9.1 percent, or $4.90, to $49.06 on the New York Stock Exchange. They've traded in a range of $45.20 to $95.96 in the past year. At the same time, oil prices closed below $67 a barrel Wednesday amid fears the U.S. might be headed for a severe economic slowdown that would crimp demand for crude.
Information from The Associated Press was used in this story.
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EARNINGS REPORT
• ConocoPhillips’ third-quarter
earnings of $5.18 billion were up from $3.6 billion a year ago.
• Third-quarter revenues were $70 billion this year, from $46.1 billion.
• Chairman says company affected by hurricanes but came out well.
• ConocoPhillips has a 900-person refinery in Old Ocean.
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