NEW YORK – ConocoPhillips reported third-quarter 2012 earnings of $1.8 billion, or $1.46 per share, compared with third-quarter 2011 earnings of $2.6 billion, or $1.91 per share. Excluding special items of $26 million, third-quarter 2012 adjusted earnings were $1.8 billion, or $1.44 per share, compared with third-quarter 2011 adjusted earnings of $1.9 billion, or $1.40 per share. Special items for the current quarter were primarily related to net gains on asset sales offset by the impact of tax law changes in the United Kingdom and pension settlement expense. “We performed well in our first full quarter as an independent E&P company," said Ryan Lance, chairman and chief executive officer. “Our production was on target, our growth projects and drilling programs are on track and our portfolio optimization plans continue to progress. Quarterly production, excluding the impact of dispositions, grew by 40 thousand BOE per day compared to the third quarter of 2011." “For the first nine months of 2012, we have generated $2.1 billion in proceeds from asset dispositions and remain on track to complete our $8-$10 billion disposition program by the end of 2013," Lance added. “We are focused on delivering average annual production growth and margin growth of 3 to 5 percent, improving our financial returns, and offering a sector-leading dividend." In the Asia Pacific and Middle East segment, quarterly production was 306 thousand BOE per day, down 6 thousand BOE per day compared to the third quarter of 2011, with continued ramp up in China largely offsetting the impact of dispositions. In Malaysia, development continued on several major offshore fields with first production from the deepwater Gumusut oil field expected in the fourth quarter. ConocoPhillips also further diluted its interest in the Australia Pacific LNG (APLNG) project from 42.5 percent to 37.5 percent during the quarter. This reduced ownership interest, coupled with Sinopec Corp.'s estimated $2.1 billion injection into APLNG associated with the dilution and APLNG's successful placement of $8.5 billion of project financing, will lower ConocoPhillips' future capital requirements to fund the project. – SG
