Boston, MA 05/08/2014 (wallstreetpr) – ConocoPhillips (NYSE:COP) is a $96 billion oil and gas company. The company noted profit dip in the latest quarter but quickly addressed the issue that there is no cause for alarm given its positive prospects. As such, the company expects the remainder of fiscal 2014 to not only compensate for the latest dip but also confirm the strong execution culture in the company.
The latest quarter was impacted by international operations where a facility in Libya remained shut down for an extended duration than earlier envisioned. However, North America operations were strong and managed to mitigate the international impact leading only to a slight decline in profit. Further, 1Q bottom-line was also impacted by higher expenses.
As such, the company promised to make internal improvements in support of bottom-line growth besides taking advantage of the favorable North American condition to offset potential impact from international operations. But even so, the company said it does not expect challenges in the international operations to be permanent.
Overall, analysts agree that ConocoPhillips (NYSE:COP) performed well in 1Q and putting in more efforts to improve performance should yield big benefits for the investors.
1Q in summary
ConocoPhillips (NYSE:COP) reported 1Q2014 net income of $2.12 billion, translating to $1.71 per share. The company had net income of $2.14 billion or $1.73 per share in the corresponding quarter of 2013.
Stripping certain items, the company realized $1.81 per share in the latest quarter. Wall Street was looking for earnings of $1.56 a share in 1Q, according to a poll conducted by FactSet.
Revenue in 1Q came in at $16.05 billion, up 10 percent from $14.65 billion in the year earlier quarter. On the average, analysts expected revenue of $10.62 billion in 1Q2014.
ConocoPhillips (NYSE:COP) incurred higher expenses in 1Q2014 leading to impact on the bottom-line. The company experienced expenses and costs amounting to $12.35 billion in the quarter, a significant jump from $10.86 billion.
Internal improvements are expected to curb expenses and costs to support bottom-line growth in the balance of 2014. As such, the company believes that a slight drop in profit in 1Q does not spoil the party for the rest of the year.