ConocoPhillips Q2 chem profit falls to $18m

23 July 2008 14:25 [Source: ICIS news]

TORONTO (ICIS news)--ConocoPhillips’ chemicals business recorded net income of $18m in the second quarter, down from $68m in the year-earlier period, mainly due to lower benzene and polyethylene (PE) margins, the US oil and petrochemicals firm said on Wednesday.

Margins fell as a result of significant increases in feedstock costs, as well as higher utility and turnaround costs, the company said.

For the first six months ended 30 June, chemical segment net income was $70m, down from $150m in the 2007 period.

Overall, ConocoPhillips recorded second-quarter net income of $5.4bn, up from $301m in the 2007 second quarter which included a $4.5bn impairment associated with the company’s Venezuelan operations.

ConocoPhillips participates in chemicals and plastics production through its 50% interest in Chevron Phillips Chemical Company (CPChem). As of December 2007, CPChem, in which US oil major Chevron holds the remaining 50% stake, had 36 production facilities in seven countries.

($1 = €0.63)

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By: Stefan Baumgarten
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