ConocoPhillips reports earnings loss of $ 31.76 bn

ConocoPhillips posted a fourth-quarter 2008 loss of $ 31.76 bn. Slumping oil prices hurt upstream results, although the company's production volumes moved higher and production taxes declined. Downstream earnings, while still positive, were down from a year earlier due to weaker US refining margins.
In fourth quarter 2007, the company earned $ 4.37 bn. Revenues in the recent quarter were $ 44.5 bn, down 16 % from a year earlier.

The company's exploration and production business reported a $ 24.3 bn fourth-quarter 2008 loss, compared with net income in the final 2007 quarter of $ 2.6 bn.
Production increased due to improved well performance and seasonality in Alaska and the Lower-48, as well as less planned and unplanned downtime, the company reported. When compared with fourth quarter 2007, production from new developments-primarily in the UK, Russia, Canada, Norway, and Indonesia-more than offset the impact of field decline.

The company also reported that higher dry-hole costs and lease impairments drove up exploration expenses in the recent quarter. Before-tax exploration expenses were $ 473 mm in fourth quarter 2008, compared with $ 268 mm in fourth quarter 2007. ConocoPhillips's refining and marketing segment reported fourth-quarter net income of $ 289 mm, compared with $ 1.1 bn in fourth quarter 2007.
Lower natural gas liquids prices reduced midstream earnings for the quarter to $ 69 mm, down from $ 162 mm a year earlier. And the chemicals segment posted a $ 6 mm quarterly loss on lower margins and volumes.

Meanwhile, the company's LUKoil Investment segment recorded a net loss of $ 7.4 bn in the recent quarter.
For 2008, the company recorded a net loss of $ 17 bn, compared with 2007 earnings of $ 11.89 bn. But revenues were $ 240.8 bn, up from $ 187.4 bn a year ago.