ConocoPhillips’ profits down, output up

HOUSTON, July 30, 2015 – ConocoPhillips posted a net loss of $179 million for the second quarter of 2015, less than analysts’ expectations. The US super-major also reported an increase in production and a cut to new investment.

The company lost $179 million in the period between April and June, a 109-percent year-on-year drop from $2.08 billion in 2014. Continued low oil prices are to blame for the reversal of fortune. Capital expenditure has also been adjusted to $11 billion, down from $11.5 billion in the first quarter.

Production for the second quarter came in at 1.6 million barrels of oil per day, representing a 4-percent year-on-year rise, and putting the company on track for a full-year increase of 2-3 percent from 2014. The figures exclude data from Libya, where civil unrest continues to interrupt oil and gas flows.

ConocoPhillips joins fellow majors including Total, BP, ExxonMobil and Italy’s Eni, which have all seen output increase year-on-year during the second quarter, while revenues have plunged. Shell stands as the lone super-major to report a decline in production, mainly due to an assets selloff.

This strategy differs from that of some smaller players. US independent Cabot Oil & Gas, for example, is trying to stabilise and even lower production, with the aim of holding on to more reserves until oil and gas prices climb.

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