ConocoPhillips Net Rises 13%

Refinery downtime is an issue.
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ConocoPhillips'

(COP) - Get Report

first-quarter earnings rose 13% from last year as revenue closed in on $50 billion.

The oil supermajor earned $3.29 million, or $2.34 a share, in the quarter, compared with earnings of $2.91 billion, or $2.05 a share, a year ago. Sales were $47.9 billion, compared with $38.9 billion a year ago. Earnings in the latest quarter matched the Thomson First Call consensus estimate.

Conoco sold more oil at higher prices in the most recent quarter, with production averaging 1.93 million barrels of equivalent a day, including 320,000 barrels a day from its Lukoil investment. Excluding that, Conoco produced an average of 1.61 million barrels a day, up from 1.59 million in the fourth quarter of 2005 and 1.6 million a year ago.

"Compared with the previous quarter, increased production from the Timor Sea, Venezuela and the U.S. lower 48 was partially offset by an unscheduled shutdown at Prudhoe Bay, as well as lower volumes from Canada, Vietnam and Indonesia," the company said.

In refining and marketing, net income fell to $390 million, from $973 million in the fourth quarter of 2005 and $700 million a year ago. "The decrease from the fourth quarter of 2005 primarily was the result of lower worldwide refining and marketing margins and reduced volumes associated with turnaround activity and unplanned downtime," the company said.

Conoco said its U.S. refineries operated at 83% of crude oil capacity, "mainly due to turnaround activity, the delayed start-up of the Alliance refinery and unplanned downtime at the Lake Charles, Bayway, Trainer and Ferndale refineries."