ConocoPhillips' (COP) fourth-quarter earnings rose 60% compared with a
year earlier as the oil producer and refiner continued to benefit from high oil
prices and improved refining margins.
The Houston-based company reported a profit $2.04 billion, or $1.39 a share, up
from $1.29 billion, or 86 cents a share, a year earlier. Excluding gains on
asset sales, write-downs and other items, earnings were up at $1.32 from $1.20.
Adjusted earnings were inline with analysts expectations of $1.32 a share. Revenue
rose 22% to $53.2 billion.
A boost in quarterly results due to rising oil prices are expected to also help
Conoco's larger rivals Chevron Corp. (CVX) and Exxon Mobil Corp. (XOM), which
reports earnings Friday and Monday, respectively.
Conoco's results also showed a slow but continued improvement in the refining
sector, which during the economic recession was in doldrums as demand for
gasoline fell. Conoco's refining-and-marketing segment returned to the black
amid stronger refining margins. Valero Energy Corp. (VRO), one of the largest
U.S.
refiners and gasoline retailers, also said Wednesday the company's
fourth-quarter loss narrowed as revenue jumped as the refining unit swung to an
operating profit on higher margins for diesel and gasoline.
"Conoco's results were more or less as expected and they are showing they
are on track to improve their finances," said Fadel Gheit, an analyst with
Oppenheimer & Co.
ConocoPhillips, which is in the midst of a two-year restructuring plan that comprises
the sale of at least $10 billion in assets in order to shore up finances, said
its fourth-quarter production dropped 5.5% to 1.73 million barrels of oil
equivalent per day. Its fourth-quarter exploration-and-production segment
earnings, however, rose 8.6%. The production decrease was due mainly to normal
field decline, primarily in
North America
and
Europe
, and
asset dispositions, the company said.
Conoco said it had $10.4 billion of cash and short-term investments at
year-end, and the oil company plans to put much of it toward stock repurchases.
It bought almost $4 billion last year. Meanwhile, Conoco's debt-to-capital
ratio was 25%, compared with 31% at the end of 2009.
Conoco said it increased its North Barnett holdings in
Texas
in
the latest quarter and acquired new acreage in other shale regions. Tuesday the
company also confirmed it sold some assets in the Barnett Shale to
private-equity firm Kohlberg Kravis Roberts & Co. (KKR).
The company said it reduced its 20% stake in OAO Lukoil Holdings (LKOH.RS) to
2% by year's end.
Shares of
ConocoPhillips are trading 1.07% up at $68.34.