ConocoPhillips (NYSE:COP) reported on Monday a 3% drop in first-quarter profit on lower gas prices in North America and refining margins.
The earnings mark the last before the company is to split into two separate energy companies on May 1: ConocoPhillips and Phillips 66. The latter will be a downstream company with the R&M, midstream and chemicals businesses.
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The Houston-based energy giant said it earned $2.9 billion during the latest quarter, or $2.27 a share, compared with a year-earlier $3 billion, or $2.09.
Excluding one-time items, the company said it earned $2.6 billion, or $2.02 a share, below average analyst estimates of $2.08 a share in a Thomson Reuters poll.
Shares of ConocoPhillips were down about 2%.
Weaknesses in refining and marketing, combined with the loss of revenue from the Lukoil divestiture and the shutdown of operations in China following an oil leak, offset an improvement in its exploration and production unit.
The exploration group was hurt by reduced volumes, lower gas prices and higher taxes that partially reversed stronger crude and liquefied natural gas prices and a boost in productivity.
However, production volumes ticked higher as ConcooPhillips started ramping up operations in Libya after postponing them last year amid political upheaval.
“We continued to progress our asset divestment program and execution of our major projects and growth plans,” ConocoPhillips CEO Jim Mulva said in a statement.
Revenue was down 0.7% to $56.1 billion, but beat the Street's view of $53.6 billion.
The company produced 1.64 million barrels of oil equivalent [BOE] per day during the quarter, which is about 65,000 BOE a day lower compared with a year ago.