As another company in the industry riding the favorable commodity price wave, Amerada Hess reported Wednesday its unaudited fourth quarter profits more than doubled, hitting $229 million, or $2.22/share, compared with $68 million, or 71 cents/share, for the same period at the end of 2003. Revenues for the quarter were $4.6 billion, compared to $3.6 billion for the same period a year earlier.

For the 12 months ended last Dec. 31, Amerada had unaudited net income of $977 million, or $9.50/share, compared with $643 million, or $5.17/share, for all of 2003 from continuing operations. Both the exploration/production (E&P) and refining/marketing portions of its business did markedly better for the quarter and year in 2004, compared to the same periods the previous year.

Capital expenditures were up in 2004 (to $1.5 billion) with more than 90% attributable to E&P activities, compared to the previous year when $1.3 billion was spent, the vast majority for E&P.

“The fourth quarter 2004 asset sale reflects the disposal of two mature Gulf of Mexico properties,” Amerada Hess said in its earnings announcement. “E&P earnings also include foreign income tax benefits in the fourth quarter of 2004 resulting from a change in tax law and a tax settlement. Refining and marketing results include income in the fourth quarter as a result of a partial liquidation of prior-year LIFO (last-in, first-out accounting) inventories.”

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