ConocoPhillips profit drops

conocophillips_logo26 April 2013, Houston – ConocoPhillips saw its net profit drop in the first quarter as production slipped on the back of asset sales.

The US major, which has divested from Nigeria, said production will fall further in the second period but remains committed to a 3% to 5% margin growth.

Production was down in Alaska and Europe although it rose in the lower 48 states of the US and Latin America, as well as slightly in Canada, Asia-Pacific and the Middle East.

Net profit for the three months to the end of March was $2.14 billion, down from $2.94 billion in the comparable period a year ago.
On an adjusted basis – taking into consideration asset sales in Kazakhstan, Algeria and Nigeria – there was only a marginal decline from $1.78 billion to $1.75 billion.

Production from continuing operations hit 1.56 million barrels of oil equivalent per day compared with 1.58 MMboepd in 2012’s first quarter. However, adjusted for disposals, production rose by 19,000 boepd.

“This increase was primarily due to new production from development programs, major projects and production from normal operations in China and Libya, offset by normal field decline and downtime,” ConocoPhillips said.

The company said of its outlook: “Consistent with prior guidance, second-quarter 2013 production from continuing operations is expected to be 1.44 MMboepd to 1.47 MMboepd, reflecting previously-announced planned downtime and turnaround activity.”

Chief executive Ryan Lance commented: “We are off to a strong start to the year, highlighted by the announcement of two significant oil discoveries in the deepwater Gulf of Mexico.

“Our base business is operating to plan, our development programmes and major projects are performing as expected and we are on track to deliver production and margin improvements this year.

“We remain committed to our goal of 3% to 5% volume and margin growth, with a compelling dividend.”

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