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HOUSTON – ConocoPhillips’ third-quarter net income of $5.18 billion soared from the $3.67 billion generated in the same quarter of 2007, due in part to higher commodity prices and stronger margins in its downstream business. Revenues for the quarter were $70 billion, compared to the $46.1 billion seen a year ago.
"Our U.S. operations were impacted by Hurricanes Gustav and Ike during the quarter, but despite these impacts, our overall operating performance was good," Jim Mulva, chairman and chief executive officer, said in a statement, adding the upstream business continued to benefit from a strong commodity price environment and ConocoPhillips produced 2.2 million barrels of oil equivalent per day during the quarter.
In its downstream business, ConocoPhillips benefited from stronger global marketing margins and was able to improve overall realized refining margins, he added.
The $7.5 billion in cash generated during the quarter from operations allowed the company to invest $4 billion in exploration and development of oil and natural gas supplies, enhancing refining capabilities and fostering emerging technologies, Mulva said. The company also repurchased $2.5 billion worth of ConocoPhillips common stock.
ConocoPhillips’ refining and marketing net income fell to $849 million in the third quarter from the $1.30 billion earned in the same time period last year. However, the third quarter of 2008 came in higher than the second quarter of this year, which saw $664 million due to improved global realized marketing margins and lower turnaround costs, according to the company.