Photo: Ekofisk complex; Source: ConocoPhillips

Higher oil prices boost ConocoPhillips profit

U.S. oil major ConocoPhillips saw an increase in its quarterly earnings driven by higher oil and gas prices.

The increase in oil and gas prices also enabled ConocoPhillips’ U.S. rivals Chevron and ExxonMobil to return to profit in 2Q 2021. European majors Shell and BP both announced a decision to boost its dividends following an increase in profit for Shell and a return to profit for BP.

Related Article

ConocoPhillips on Tuesday reported second-quarter 2021 earnings of $2.1 billion compared with second-quarter 2020 earnings of $0.3 billion

Excluding special items, second-quarter 2021 adjusted earnings were $1.7 billion compared with a second-quarter 2020 adjusted loss of $1.0 billion.

The company’s second-quarter production was 1,547 thousand barrels of oil equivalent per day (MBOED), excluding Libya. This was an increase of 566 MBOED from the same period a year ago.

Earnings increased from second-quarter 2020 due to higher realized prices and volumes, partially offset by the absence of the second-quarter 2020 gain following completion of the Australia-West divestiture, as well as higher depreciation expense associated with the higher volumes.

Excluding special items, adjusted earnings were higher compared with second-quarter 2020 due to higher realized prices and higher volumes, partially offset by increased depreciation expense associated with the higher volumes.

The company’s total average realized price was $50.03 per BOE, 117 per cent higher than the $23.09 per BOE realized in the second quarter of 2020, reflecting higher marker prices and improved realizations.

Third-quarter 2021 production is expected to be 1.48 to 1.52 MMBOED, reflecting seasonal turnarounds planned in Alaska and the Asia Pacific region. This guidance excludes Libya and assumes that previously announced divestitures close during the third quarter of 2021.