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ConocoPhillips Posts $1.3 Billion Profit

October 29, 2003

HOUSTON (AP) _ ConocoPhillips rode high oil and gas prices and better refining margins to a $1.3 billion third-quarter profit, the Houston-based company said Wednesday.

ConocoPhillips earned net income of $1.90 per share, compared to a net loss of $116 million, or 24 cents per share, in the year-ago quarter. The 2002 results include two months of activity from Phillips Petroleum Inc. and one month of activity from the combined company, which completed its $15 billion merger in August last year.

Income from continuing operations for the third quarter was $1.25 billion, or $1.82 per share, compared to a loss of $74 million, or 15 cents per share, a year earlier.

Analysts surveyed by Thomson First Call expected ConocoPhillips to earn $1.59 per share.

Revenues were $26.5 billion, compared to $14.7 billion in the third quarter of 2002.

``We operated and benefited from market conditions in both upstream and downstream,″ said Jim Mulva, president and chief executive officer of ConocoPhillips.

In the first nine months of 2003, net income was $3.69 billion, or $5.40 per share, compared to $133 million, or 32 cents a share in the January-September period of 2002, which included one month of activity by the combined company. Total revenues for the first nine months were $79.1 billion, compared to $33.7 billion a year ago.

Mulva said ConocoPhillips has completed asset sales of $2.2 billion since the merger closed, and the company expects to finish an estimated $1.3 billion more by the end of the year.

``This will meet our announced divestiture program target of $3 billion to $4 billion by the end of 2004,″ Mulva said.

Daily production for the third quarter dropped to 1.56 million barrels of oil equivalent per day from 1.64 million in the second quarter this year because of seasonal declines, scheduled maintenance in Alaska and the North Sea, and asset dispositions in the Lower 48 states.

Mulva said the company will pursue expansion of worldwide natural gas opportunities in Qatar, Venezeula and Australia. He also said the company anticipates crude oil utilization rates to exceed 90 percent.

ConocoPhillips shares fell 20 cents to $56.77 in Wednesday morning trading on the New York Stock Exchange.

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