Wednesday, July 28, 2010

Conoco (NYSE:COP) Surges on Increased Margins, Oil Prices

ConocoPhillips (NYSE:COP) enjoyed over double the earnings in their latest quarter, as refinery margins and oil prices led them during the reporting period.

Profits came to $4.16 billion, or $2.77 a share in the second quarter, contrasting with the $859 million, or 57 cents a share in the same quarter last year. Revenue also exploded from $35.45 billion to $45.69 billion during that time.

Price per barrel of oil rose to $71.09, a 37 percent gain, while natural gas prices increased to $4.50 per million cubic feet, a gain of 22 percent.

Conoco's profit margins from refineries were much stronger, where the American refineries generated income of $782 million. That was unfortunately offset by a $1.1 billion impairment charge in connection to its Germany-based Wilhelmshaven refinery.

The goal of selling about $10 billion in assets remains on the front of Conoco's strategy, and CEO Jim Mulva announced the next assets to be sold will be its entire stake in Lukoil, the largest private oil company in Russia.

In June Conoco sold its stake in the Canada oil sands to Sinopec for $4.65 billion.

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