ConocoPhillips posted higher fourth-quarter profits Wednesday as record oil prices outweighed lower profits from gasoline production. The third-largest U.S. oil company said profits rose 37 percent to $4.37 billion from $3.2 billion in the fourth quarter of 2006. Revenue increased to $52.7 billion from $41.5 billion a year ago. “We had another solid quarter, which contributed to a strong year in terms of operating performance and market conditions, enabling us to achieve positive financial results,” ConocoPhillips chief executive Jim Mulva said in a statement. Oil prices averaged more than $90 a barrel during the fourth quarter, and nearly hit $100, due to tight supplies, geopolitical risks, and the weak U.S. dollar. Still, profit was somewhat reduced at ConocoPhillips, which both produces oil and processes it to make gasoline and other refined products. Gasoline prices did not keep pace with the record-high price of oil during the quarter. Profit at the company's refining business rose to $1.12 billion from $919 million a year ago. ConocoPhillips said profit at its exploration and production business rose to $2.61 billion, benefiting from higher commodity prices. The company said it produced the equivalent of about 2.3 million barrels of oil per day during the quarter. It expects first-quarter production to equal about 1.8 million barrels per day. Full 2007 profits were $11.9 billion, down from $15.5 billion in 2006. Excluding a $4.5 billion loss in the second quarter when Venezuela nationalized ConocoPhillip's assets there, the company's profits would have been $16.4 billion, its best annual result.
