ConocoPhillips Q3 chems profits plunge to $46m

22 October 2008 14:45  [Source: ICIS news]

LONDON (ICIS news)--ConocoPhillips' chemicals net income for the third quarter plunged to $46m (€35m) from $110m during the same period last year, the US oil and gas firm said on Wednesday.

“The decrease from the third quarter of 2007 was primarily due to higher utility costs and lower aromatics and styrenics margins,” said the company.

However, profits were up significantly from $18m in the second quarter this year.

ConocoPhillips said this increase was primarily due to higher olefins and polyolefins margins, partially offset by lower aromatics and styrenics margins, costs associated with the decommissioning of an asset and hurricane impacts.

Net income for the first nine months of 2008 was $116m compared with $260m in 2007, primarily due to higher utility costs and lower aromatics and styrenics margins.

At group level, the company’s net income surged to $5.19bn in the third quarter from $3.67bn during the same period last year. Revenues rose 52% to $70bn from $46.1bn.

“Our US operations were impacted by Hurricanes Gustav and Ike during the quarter, but despite these impacts, our overall operating performance was good,” said Jim Mulva, chairman and chief executive officer.

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 = €0.76)

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By: Hilde Ovrebekk
+44 20 8652 3214

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