Conoco Announces 2002 Second Quarter Earnings.

Business WireJuly 23, 2002

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Conoco Announces 2002 Second Quarter Earnings.

Business Editors & Energy Writers

HOUSTON--(BUSINESS WIRE)--July 23, 2002

Conoco (NYSE:COC)

-- Earnings 22 Cents Per Diluted Share -- Production Up 25 Percent -- Natural Gas Prices and U.S. Downstream Refining Margins Significantly Lower -- Gulf Indonesia Tender Offer Successful -- Conoco & Phillips Merger On Track Conoco (NYSE:COC) today said sharply lower natural gas prices and refining margins, as well as non-cash charges resulting from adverse currency movements, led to much lower earnings for the quarter. Net income before special items totaled $141 million, or 22 cents per diluted share, 77 percent lower than last year's record second quarter of $606 million, or 95 cents per diluted share.

After-tax operating income of $242 million was $130 million higher than the first quarter. Upstream increased $118 million, or 76 percent, while downstream improved $12 million, or 63 percent.

Revenue for the quarter totaled $9.7 billion, down 8 percent from $10.6 billion last year on lower prices.

Net income totaled $130 million, or 20 cents per diluted share, down from $552 million, or 87 cents per diluted share, earned during the same period last year.

"It was a difficult quarter due to weak refining margins, especially in the United States. The relative increase in the cost of heavy crude oil was particularly disadvantageous to Conoco's complex refinery confi...

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