ConocoPhilips Predicts Drop in Q3 Profits

ConocoPhilips is anticipating poor exploration and production results in the third quarter of 2009 due to low natural gas prices in North America, the company has announced.

According to the Q3 2009 interim update, overall Q3 production on a barrel-of-oil equivalent (BOE) a day, covering Syncrude but excluding Lukoil, is expected to be about 1.78 million BOE per day.

Seasonal planned maintenance activities in Alaska and the UK have affected Q3 output.

Exploration expenditure before-tax for the quarter is estimated at almost $400m.

Third-quarter refining and marketing results are likely to be affected by narrow light-heavy crude differentials and low international distillate margins, the company said.

Conoco’s Q3 average international crude oil refining capacity utilisation rate is expected to be in the upper 80% range. The domestic and global utilisation rates are anticipated to be in the lower 90% range and upper 70% range, respectively.