Conoco-Phillips announced Thursday that “significantly improved” oil and natural gas prices helped more than double net profit from one year ago, despite stumbling production.
The Houston refiner reported a first quarter net income of $2.1 billion, or $1.40 per share, from $800 million, or 54 cents per share, in the same quarter of 2009, according to ConocoPhillips documents. Earnings available to the common shareholders were $2.2 billion, or $1.47 per share, following the company’s decision to end participation in the Shah Gas Field and Yanbu refinery projects in the Middle East.
Revenue reached $44.8 billion in the quarter, up from $30.7 billion in 2009’s first quarter, company documents state.
“Improving market conditions in the first quarter contributed to increased earnings,” ConocoPhillips Chairman and CEO Jim Mulva said in a conference call with investors and the media.
Production of oil and gas in the first quarter fell about 5 percent from one year ago, when the company produced about 1.93 million barrels of oil per day, according to company documents.
The decrease was due to normal field declines in the United Kingdom and North America, the effects of production-sharing agreements and unplanned down time in North America related to weather, company documents state. But increased production from China and Canadian oil sands helped offset the decrease.
ConocoPhillips annou-nced in October it hopes to sell $10 billion in assets to focus on oil and natural gas exploration efforts.
The company agreed this month to sell its stake in Syncrude, a Canadian oil sands project, for $4.65 billion. It also hopes to sell half of its 20 percent stake in Russian oil giant Lukoil, which produced earnings of $387 million in the first quarter for ConocoPhillips.
“The increase in dividends and the sale of the Syncrude interest are examples of steps we have taken to increase distributions and improve our balance sheet,” Mulva said. “As previously annou-nced, we decided to opt out of the Yanbu refinery project and have elected not to participate in the Shah gas field development in Abu Dhabi. Over the next couple of years we expect to see improved shareholder returns through disciplined capital investment, a strengthened financial position and growth in shareholder distributions.”
The company reported gains in all but two segments.
ConocoPhillips exploration and production arm recorded first-quarter earnings of $1.83 billion, an increase from the $700 million it posted in last year’s first quarter, according to company documents.
“The higher crude oil and natural gas liquids prices resulted in improv-ed earnings across our E&P portfolio,” Mulva said.
ConocoPhillips refining and marketing segment lost $4 million in the first quarter, compared with a profit of $205 million in the year-ago quarter, company documents state. Weakened market conditions hurt the refining and marketing segment, but light-heavy crude differentials widened and earnings benefited from lower costs and improved clean product yields.
The company’s chemicals arm, Chevron Phillips Chemical, earned $110 million in the first quarter, compared to $24 million in the same period one year ago, company documents state.
ConocoPhillips’ emerging business arm earned $6 million in the first quarter, according to company documents.
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The Houston refiner reported a first quarter net income of $2.1 billion, or $1.40 per share, from $800 million, or 54 cents per share, in the same quarter of 2009, according to ConocoPhillips documents. Earnings available to the common shareholders were $2.2 billion, or $1.47 per share, following the company’s decision to end participation in the Shah Gas Field and Yanbu refinery projects in the Middle East.
Revenue reached $44.8 billion in the quarter, up from $30.7 billion in 2009’s first quarter, company documents state.
“Improving market conditions in the first quarter contributed to increased earnings,” ConocoPhillips Chairman and CEO Jim Mulva said in a conference call with investors and the media.
Production of oil and gas in the first quarter fell about 5 percent from one year ago, when the company produced about 1.93 million barrels of oil per day, according to company documents.
The decrease was due to normal field declines in the United Kingdom and North America, the effects of production-sharing agreements and unplanned down time in North America related to weather, company documents state. But increased production from China and Canadian oil sands helped offset the decrease.
ConocoPhillips annou-nced in October it hopes to sell $10 billion in assets to focus on oil and natural gas exploration efforts.
The company agreed this month to sell its stake in Syncrude, a Canadian oil sands project, for $4.65 billion. It also hopes to sell half of its 20 percent stake in Russian oil giant Lukoil, which produced earnings of $387 million in the first quarter for ConocoPhillips.
“The increase in dividends and the sale of the Syncrude interest are examples of steps we have taken to increase distributions and improve our balance sheet,” Mulva said. “As previously annou-nced, we decided to opt out of the Yanbu refinery project and have elected not to participate in the Shah gas field development in Abu Dhabi. Over the next couple of years we expect to see improved shareholder returns through disciplined capital investment, a strengthened financial position and growth in shareholder distributions.”
The company reported gains in all but two segments.
ConocoPhillips exploration and production arm recorded first-quarter earnings of $1.83 billion, an increase from the $700 million it posted in last year’s first quarter, according to company documents.
“The higher crude oil and natural gas liquids prices resulted in improv-ed earnings across our E&P portfolio,” Mulva said.
ConocoPhillips refining and marketing segment lost $4 million in the first quarter, compared with a profit of $205 million in the year-ago quarter, company documents state. Weakened market conditions hurt the refining and marketing segment, but light-heavy crude differentials widened and earnings benefited from lower costs and improved clean product yields.
The company’s chemicals arm, Chevron Phillips Chemical, earned $110 million in the first quarter, compared to $24 million in the same period one year ago, company documents state.
ConocoPhillips’ emerging business arm earned $6 million in the first quarter, according to company documents.
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