Conoco Earnings Rise 39 Percent
Oct. 27, 1999
HOUSTON (AP) _ Conoco Inc. said its third-quarter earnings rose 39 percent on gains in its exploration and production business.
Conoco, whose spinoff from DuPont Co. was completed during the quarter, said it had earnings before one-time items of $261 million, or 41 cents a share, compared with $188 million, or 30 cents a share, in 1998 on what's called a pro forma basis. That assumes that Conoco was publicly-owned in the third quarter of 1998, and provides a basis for measuring the company's performance.
Conoco's results in the latest quarter exceeded the consensus estimate of 39 cents from analysts polled by First Call/Thomson Financial.
Net income, which reflects $38 million in charges related in part to the company's separation from DuPont, totaled $223 million for the latest quarter, up 19 percent from $118 million a year ago.
Revenues rose 24 percent to $7.49 billion from $6.02 billion a year ago on a pro forma basis.
Conoco faced a situation similar to that at other oil companies during the quarter _ higher crude oil prices gave it increased exploration and production earnings, but competitive pricing pressures in the market for refined products held back earnings in that side of the business.
The company reported a 114 percent increase in exploration and production earnings, to $252 million from $118 million last year. International results were especially strong.
Refining and marketing profits fell 16 percent to $96 million from $114 million.
Conoco's stock was up 25 cents to $27.18 3/4 Wednesday on the New York Stock Exchange.
For the first nine months of the year, Conoco had earnings before one-time items of $458 million, or 72 cents a share, down from $584 million, or 92 cents a share, on a pro forma basis for the same period of 1998.
Net earnings came to $420 million, or 66 cents a share, down from $610 million, or 96 cents a share, on a pro forma basis for the same period last year.
Revenues came to $19.15 billion, up from $17.46 billion.