ConocoPhillips posts $3 bn in Q1 earnings

Higher oil prices and refining margins made up for lower production as ConocoPhillips grossed $3 billion in first-quarter earnings, the integrated energy company said yesterday.

Though the Houston-based company failed to achieve targets on exploration and production as also refining and marketing capacity, it improved its overall financial results from the first three months of last year.

Adjusted earnings, excluding gains from asset dispositions stood at $2.6 billion, or $1.82 per share, up more than $400 million.

CEO Jim Mulva, bullish on drilling prospects including shale plays at the same time noted production drops and weak refining utlilisation. Global refining utlisation recorded 96 per cent in the quarter as against the US industry rate of 87 per cent.

"For the quarter, earnings would have been about $50 million higher if we had operated our US downstream at planned levels," Mulva said in a statement. "We did not capture all the market opportunities available to us due to downtime at several refineries."

On the whole, ConocoPhillips production recorded an average of 1.7 million barrels of oil equivalent per day in the first quarter, which was less by 125,000 BOE daily against the year earlier.