Venezuela move: has hit ConocoPhillips' bottom line
ConocoPhillips sways after Caracas slug
US supermajor ConocoPhillips saw its second-quarter profit fall as it took a $4.5 billion charge related to Caracas' move to renationalise the company's operations in Venezuela.
Net income in the quarter fell to $301 million, or 18 cents a share, from $5.19 billion, or $3.09 a share, last year.
Excluding the $4.5 billion impairment for its Venezuelan assets, ConocoPhillips posted earnings of $2.90 a share.
ConocoPhillips' exploration and production earnings, excluding the effect of the Venezuela impairment, fell 36% as lower crude oil prices and sales volumes as well as higher taxes weighed on results.
The company said today it expects its full-year production to average around 2.325 million barrels of oil equivalent per day, including its Lukoil investment and the effect of lost production from Venezuela.
The company had previously forecast production of 2.375 million barrels of oil equivalent per day for the year.
Speaking on a company conference call, ConocoPhillips chief executive Jim Mulva also said its capital spending could be as high as $15 billion in 2008, partly due to higher costs.