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HOUSTON and NEW YORK -- Petroleum giants ConocoPhillips and Hess Corp. both reported large profits for their fiscal 2011 second quarters. The two companies combined raked in slightly more than $4 billion for the three-month period ending June 30.
ConocoPhillips earned $3.4 billion for the quarter. However, that figure trailed the $4.2 billion profit the company earned during the same period in 2010. According to the company, earnings came in 18 percent lower this year largely due to the cancellation of its Denali pipeline project.
ConocoPhillips recently announced it would split itself into two companies, one focused on exploration and production and another on refining and marketing. "We had a solid quarter," said Jim Mulva, the company's chairman and CEO. "Both companies will be uniquely positioned in their respective industries, with the management focus, financial strength and technical capability to successfully invest in the industry's highest returning projects."
Despite lower earnings compared to the same period in 2010, Wall Street looked upon ConocoPhillips' earnings favorably. The $3.4 billion exceeded the expectations of analysts, who predicted the company would earn about $3.08 billion for the second quarter.
The story was the opposite over at Hess. Net income for its 2011 second quarter increased 62 percent to $607 million, compared to the $375 million net profit the company earned during the same quarter in 2010. Net revenues skyrocketed to $9.8 billion for this quarter, compared to $7.7 billion during 2010's second quarter.
However, Wall Street soured on the results, as analysts expected Hess to earn $652 million in this latest quarter.