Good upstream operations capitalizing on strong commodity prices catapulted ConocoPhillips’ fourth quarter 2004 earnings to more than twice the level for the same period a year earlier, the company reported Wednesday. It recorded net income of $2.4 billion, or $3.44/share, this past quarter, compared with $1 billion, or $1.48/share, for the fourth quarter of 2003. Revenues were $40.1 billion, compared to $26 billion for the same period the previous year.

For the 12 months ending Dec. 31, 2004, ConocoPhillips reported earnings of $8.1 billion, or $11.60/share, on overall revenues of $136.9 billion, compared to $4.7 billion in earnings, or $6.91/share, on overall revenue of $105.1 billion for all of 2003.

ConocoPhillips CEO Jim Mulva noted that the firm’s financial position “continues to steadily improve, and our return on capital employed remains strong and competitive.” He lauded the company’s operations in the fourth quarter particularly.

“The total company produced 1.75 million boe/d, including 1.6 boe/d from our exploration and production segment and an estimated 150,000 bbl/d from our LUKOIL equity investment,” Mulva said. “Downstream, our domestic operations benefited from improved heavy-light crude oil differentials, and our international refineries ran well, with strong capacity utilization rates.”

Mulva said that worldwide, ConocoPhillips refineries ran at 94% capacity, excluding the impact of LUKOIL. He said for the full year the company generated $12 billion in cash and spent $9.5 billion on capital projects and investments, including the purchase of 10% of LUKOIL.

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