Phillips reports lower income and production

Steve Sutherlin, PNA managing editor

Phillips Petroleum Co. recorded second-quarter net operating income, excluding special items, of $369 million or 95 cents per share, down from $602 million or $2.34 per share for the same period in 2001, the company said July 23. Total revenues were $11.6 billion, versus $5.4 billion a year ago.

Upstream commodity prices and margins in refining, marketing and transportation were lower than in the second quarter of 2001, said Jim Mulva, CEO.

“Corporate expenses were $99 million, compared with $139 million in the previous quarter,” he said.

The company’s second quarter 2002 average worldwide crude oil sales price was $24.40 per barrel, down $1.44, or 6 percent, from the same period a year ago. Its average natural gas price of $2.56 per thousand cubic feet in the contiguous 48 states declined 35 percent from $3.91 per mcf in second quarter 2001. Foreign natural gas prices for second quarter 2002 averaged $2.20 per thousand cubic feet, versus $2.48 per mcf in second-quarter 2001.

Mulva said the company expects third-quarter 2002 production to be at about the same level as that of the second quarter.