NEW YORK, N.Y. - ConocoPhillips said Wednesday its second-quarter income more than doubled as oil prices increased and refining margins jumped.
The Houston oil company also announced plans to sell its entire holdings in Russian oil company Lukoil by the end of next year.
Conoco reported earnings of US$4.16 billion, or $2.77 per share, for the second quarter. That compares with $859 million, or 57 cents per share, in the same part of 2009. Revenue rose to $45.69 billion from $35.45 billion.
Excluding a gain, Conoco earned $1.67 per share in the latest quarter. On that basis, analysts had expected $1.56 per share.
The rebound in energy prices has boosted oil companies' sales this quarter. Conoco pumped 8 per cent less oil in the second quarter, but the average price it received for each barrel increased 37 per cent to $71.09. Natural gas prices also increased 22 per cent to $4.50 per million cubic feet.
ConocoPhillips continues to move forward with plans to shed $10 billion in assets. In June, the company completed a $4.65 billion deal win Sinopec to sell its stake in a Canadian oil sands project.
On Wednesday, CEO Jim Mulva said the company plans to sell its entire stake in Lukoil, Russia's largest private oil company. It announced a $3.44 billion deal to sell 40 per cent of its stake to Lukoil this quarter. Conoco aims to sell the remaining 60 per cent either to Lukoil or on the open market by the end of 2011.
Conoco's refining business enjoyed higher profit margins in the quarter. Its U.S. refineries reported income of $782 million in the quarter. But companywide the operation lost money after including a $1.1 billion impairment charge related to its Wilhelmshaven refinery in Germany.
Conoco had planned to upgrade the refinery, but now it wants to sell it or use it in another way.
Shares added 19 cents to $54.63 in morning trading.
