ConocoPhillips Net Income Jumps on Higher Prices

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ConocoPhillips Net Income Jumps on Higher Prices

HOUSTON -- ConocoPhillips, the third largest U.S. oil company, saw its fourth-quarter net income rise more than $1 billion due to higher commodity prices, although refinery throughput fell, according to an announcement by the company.

Profits rose to $4.37 billion from the nearly $3.2 billion earned in the comparable period of fiscal 2006, while revenues reached $52.7 billion -- a more than $10 billion increase from the $41.5 billion generated in the fourth quarter of 2006.

"We had another solid quarter, which contributed to a strong year in terms of operating performance and market conditions, enabling us to achieve positive financial results," ConocoPhillips chairman and CEO Jim Mulva said in a statement. "We are delivering on our commitments, and we remain focused on continuous improvement in all of our operations."

In the company's refining and marketing segment, net income fell to $1.12 billion from the $1.3 billion reported in the third quarter of 2007, but increased compared to the $919 million generated in the fourth quarter of 2006, the company stated.

In the company's exploration and production division, net income primarily rose on higher commodity prices, while daily production averaged 1.84 million barrels of oil equivalent per day, a decrease from the 2.05 barrels seen in the year-ago period.

In the future, the company will continue its asset rationalization, including its U.S. retail assets, Mulva said. "Our asset rationalization program remains on target, with proceeds of approximately $3.8 billion since inception," he said in a statement.

"We expect to continue our rationalization efforts in 2008, including the completion of the disposition of our U.S. retail assets. We will evaluate additional opportunities to optimize and strengthen our asset portfolio as the year progresses."