ConocoPhillips profits sink in second quarter

World's largest independent oil and gas producer said adjusted earnings fell to $1.14 billion from $1.29bn a year earlier

WTI remains strong, narrowing the gap between Brent futures as supply cuts strengthen prices. Reuters

Independent oil and gas producer ConocoPhillips reported an 11.6 per cent drop in quarterly profit on Tuesday, as fears of slowing global economy weighed on crude prices.

US light crude prices averaged $59.91 per barrel in the second quarter, 11.8 per cent lower than a year earlier, while Brent crude averaged $68.47 per barrel, 8.7 per cent lower than a year earlier.

That led to a drop in realised prices per barrel for the US-based company, which earned $50.50 for each barrel sold in the latest quarter, compared with $54.32 a year earlier.

ConocoPhillips, the world's largest independent oil and gas producer, said production, excluding Libya, rose to 1.29 million barrels of oil equivalent per day (boepd), an increase of 79,000 boepd from a year earlier.

Adjusted earnings fell to $1.14 billion (Dh4.18bn), or $1.01 per share, in the second quarter ended June 30 from $1.29bn, or $1.09 per share, a year earlier.

"Earnings were lower compared with the second quarter of 2018 primarily due to lower realised prices and a lower unrealised gain on our Cenovus Energy equity, partially offset by higher volumes and a financial tax benefit related to the planned UK disposition," ConocoPhillips said.