ConocoPhillips rides high energy prices to $1.1 billion profit

HOUSTON (AP) _ ConocoPhillips reported a $1.1 billion second-quarter profit Wednesday largely because of higher oil and gas prices. <br><br>The nation's third-largest oil company compared its second-quarter

Wednesday, July 30th 2003, 12:00 am

By: News On 6

HOUSTON (AP) _ ConocoPhillips reported a $1.1 billion second-quarter profit Wednesday largely because of higher oil and gas prices.

The nation's third-largest oil company compared its second-quarter showing of $1.66 per share to Phillips Petroleum Co.'s earnings of $351 million, or 91 cents per share, in the year-ago period. Phillips and Conoco merged Aug. 30 last year, so the company is comparing earnings to only that of Phillips. The combined company reported its first results in the fourth quarter of 2002.

Excluding $59 million in income from discontinued operations, ConocoPhillips earned $1 billion, or $1.58 per share, compared to Phillips' $312 million, or 81 cents per share, in the year-ago period.

Analysts surveyed by Thomson First Call expected $1.43 per share.

ConocoPhillips' revenues were $25.6 billion, compared to Phillips' $10.5 billion a year ago.

``This operating performance combined with solid commodity prices, disciplined capital spending, asset sales, and the financial benefits of our synergy initiatives contributed to continued strong earnings and allowed us to reduce our debt by $2.2 billion so far this year,'' said Jim Mulva, president and chief executive officer of ConocoPhillips.

Mulva said upstream production was 1.64 million barrels-of-oil-equivalent for the quarter, and refineries ran at 96 percent capacity. The refining and marketing segment income was $301 million, down from $371 in the first quarter 2003 because of lower worldwide refining margins. Phillips reported $68 million in income in the segment in the second quarter of 2002.

Net income for the first six months of 2003 was $2.57 billion, or $3.77 cents per share, compared to Phillips' $249 million, or 65 cents per share, in the first six months of 2002.