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Phillips 1Q profit soars
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April 30, 2001: 11:08 a.m. ET
Oil producer's earnings nearly double on slight increase in revenue
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NEW YORK (CNNfn) - Phillips Petroleum Co. became the latest major oil company to report significantly better first-quarter results Monday as it edged past Wall Street forecasts.
The nation's No. 7 oil company said it earned $504 million, or $1.96 a share, up from the $271 million, or $1.06 a share, a year earlier. Analysts surveyed by earnings tracker First Call had forecast earnings of $1.92 a share.
Sales climbed to $4.9 billion from $4.8 billion, due greatly to higher natural gas prices in the quarter. Crude oil prices were down from both the first and fourth quarters of 2000.
The company's earnings from refining and sales of gasoline improved to $48 million from $27 million a year earlier, helped by the lower crude oil prices and greater efficiency at its Sweeny, Texas, refinery. That increase help make up for a $39 million operating loss from the chemical business it operates as a joint venture with Chevron Corp. (CHV: down $0.02 to $97.47, Research, Estimates).
The company's exploration and production earnings more than doubled to $585 million from $223, despite the lower price of oil due to increased production during the period and the higher natural gas prices.
The company's earnings statement did not give any specific earnings or revenue forecast for the remainder of the year, although it said it is on track to meet its goal of a 15 percent production increase, even with the expected second-quarter seasonal drop in output. Margins in its chemical business likely will continue to be squeezed by higher energy and raw material costs.
Most major oil companies also reported stronger first quarter results last week, led by Exxon Mobil Corp. (XOM: up $0.45 to $89.51, Research, Estimates), the world's largest oil company, which reported earnings that were up more than 50 percent from a year earlier but slightly off the record profits it set in the fourth quarter. Chevron, the nation's second-largest oil company, also saw profits climb more than 50 percent as it beat forecasts. 
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