ConocoPhillips witnesses Q4 net loss due to 'depressed economic conditions'

ConocoPhillips posted a Q4 - 2008 net loss of US$31,764 mln (US$21.37 per share) compared with net income of US$4,371 mln (US$2.71 per share) for the same quarter in 2007. Revenues were US$44.5 bln, versus US$52.7 bln a year ago. Fourth-quarter 2008 adjusted earnings stood at US$1,914 mln (US$1.28 per share) compared with fourth-quarter 2007 adjusted earnings of US$4,108 mln (US$2.55 per share). "Our financial performance for the quarter reflects the depressed economic conditions and business environment impacting not only our industry, but domestic and global markets as well," said Jim Mulva, chairman and chief executive officer. For fiscal year 2008, the company recorded a net loss of US$16,998 mln ($11.16 per share), compared with 2007 net income of US$11,891 mln ($7.22 per share). ConocoPhillips' Refining and Marketing (R&M) segment reported fourth-quarter net income of US$289 mln, compared with US$849 mln in the previous quarter and US$1,122 mln in the fourth quarter of 2007. Fourth-quarter 2008 R&M adjusted earnings were US$753 mln, compared with adjusted earnings of US$847 mln in the previous quarter and US$1,097 mln in the fourth quarter of 2007. R&M net income for 2008 was $2,322 million, compared with $5,923 million in 2007. The domestic refining crude oil capacity utilization rate for the fourth quarter was 94 percent, a 4 percent increase from the previous quarter, which was impacted by hurricane-related downtime. The international crude oil capacity utilization rate was 89 percent, up from 75 percent in the previous quarter, including lower economic run reductions in the fourth quarter at the Wilhelmshaven, Germany, refinery. The company's Chemicals segment reported a fourth-quarter net loss of US$6 mln, compared with net income of US$46 mln in the previous quarter and US$99 mln in the fourth quarter of 2007. The decrease from the previous quarter was primarily due to lower margins and volumes. E&P segment reported a fourth-quarter net loss of US$24,293 mln, compared with net income of US$3,928 mln in the previous quarter and $2,608 million in the fourth quarter of 2007. For fiscal 2008, the segment had a net loss of US$13,479 mln, compared with net income of US$4,615 mln in 2007. However, the Midstream segment had fourth-quarter net income of US$69 mln, compared with US$173 mln in the previous quarter and US$162 mln in the fourth quarter of 2007. The decrease from the previous quarter was primarily attributable to lower realized natural gas liquids prices, partially offset by higher volumes due to a return to normal levels following hurricane disruptions in the prior quarter. As far as the outlook is concerned, Mulva commented, "We anticipate the company's first-quarter E&P segment production will be near fourth-quarter 2008 production, and we expect exploration expenses to be around $400 million for the quarter. Downstream, we anticipate the worldwide refining crude oil capacity utilization rate in the first quarter to be in the low-80-percent range due to planned turnaround activity in the United States and continued economic run reductions at the Wilhelmshaven refinery.