ConocoPhillips 2Q Profit Down 76%

Refining & Marketing segment reports second-quarter loss of $52 million

Published in CSP Daily News

HOUSTON -- ConocoPhillips has reported second-quarter earnings of $1.298 billion, or 87 cents per share. This compared with earnings of $5.439 billion, or $3.50 per share, for the same quarter in 2008. Revenues were $35.4 billion, versus $71.4 billion a year ago.

"Although we experienced significantly lower commodity prices and margins than in the second quarter of last year, we delivered solid operational results during the quarter," said Jim Mulva, chairman and CEO. Exploration and production was up 7%, he added.

The E&P segment reported second-quarter earnings [image-nocss] of $725 million, compared with $3.999 billion in the second quarter of 2008. The decrease was primarily due to the impact of significantly lower commodity prices, partially offset by higher volumes and lower operating costs.

E&P earnings for the first six months of 2009 were $1.425 billion, compared with earnings of $6.886 billion during the first six months of 2008. The decrease was primarily due to the impact of significantly lower commodity prices, partially offset by higher volumes and lower operating costs.

The Midstream segment had second-quarter earnings of $31 million, compared with $162 million in the second quarter of 2008, primarily due to lower realized prices and volumes.

Midstream earnings for the first six months of 2009 were $154 million, compared with earnings of $299 million in the corresponding period of 2008.

The Refining & Marketing segment reported a second-quarter loss of $52 million, compared with earnings of $664 million in the second quarter of 2008. The decrease in earnings was primarily due to lower worldwide realized refining margins and volumes, partially offset by lower operating expenses. Worldwide realized refining margins were lower primarily due to the significant decrease in distillate margins and the narrowing of light-heavy crude differentials, partially offset by the impact of lower crude oil prices on secondary product margins.

The domestic refining crude oil capacity utilization rate for the second quarter was 93%, compared with 94% in the second quarter of 2008.

R&M earnings for the first six months of 2009 were $153 million, compared with earnings of $1,184 million in the six-month period of 2008. The decrease was primarily due to lower worldwide realized refining margins and volumes, as well as a lower net benefit from asset rationalization efforts, partially offset by lower operating expenses.

Houston-based ConocoPhillips is an international, integrated energy company.