Conoco sets earnings record, expects strong second quarter

April 24, 2001
Conoco Inc., Houston, reported a fifth consecutive quarter of record earnings and expects a good second quarter as demand for refined products and natural gas remains strong into the summer. Net income was $653 million, or $1.03/share for the first quarter compared with $399 million, or 63¢ a share, for the same period last year


By the OGJ Online Staff

HOUSTON, Apr. 23 -- Conoco Inc., Houston, reported a fifth consecutive quarter of record earnings and expects a good second quarter as demand for refined products and natural gas remains strong into the summer.

Net income was $653 million, or $1.03/share for the first quarter compared with $399 million, or 63¢ a share, for the same period last year. Revenue for the most recent quarter was $10.6 billion compared with $8.7 billion last year.

Archie Dunham, Conoco chairman and CEO, said 25 wildcat wells and nine appraisal wells are slated to be drilled this year.

"We're off to a good start, with two North Sea exploration wells already declared commercial. Also, a recent development in Viet Nam has significantly increased production on the Rang Dong field," he said (OGJ Online, Apr. 23, 2001).

"The second quarter is expected to be another good quarter for earnings ... an increase in Conoco's worldwide crude oil and natural gas liquids production during the quarter is expected to offset the anticipated seasonal decrease in North Sea production. As a result, worldwide production should be up about 5% over last year's second quarter," Dunham said.

The downstream sector also reported strong results in the first quarter, he said, adding the greatest uncertainty for the second quarter is the cost and time it will take to resume operations at the Humberside, England, refinery.

An explosion and fire in the saturate gas plant rocked the 230,000-b/d-refinery last week. There were no major injuries.

"Since a major turnaround was already scheduled to start this week, the earnings impact of the incident should not be as severe in the second quarter as it otherwise might have been," Dunham said.