By Arunima Kumar
(Reuters) -ConocoPhillips said on Thursday profit more than doubled to $18.7 billion in 2022, the highest since the company spun-off its refining business in 2012, as the oil producer benefited from higher prices on tight supplies and robust demand.
Global crude oil prices climbed 10.45% in 2022 as strong demand from economies rebounding from pandemic-induced slump collided with shortages caused by sanctions on Russia due to its invasion of Ukraine.
Total average realized price rose 8% to $71.05 per barrel of oil equivalent in the fourth quarter, ConocoPhillips said.
Larger rivals Exxon Mobil Corp and Chevron Corp posted record profits last month, renewing criticism of the oil industry and sparking more calls to levy windfall profit taxes on the companies.
Houston-based ConocoPhillips also declared a variable dividend of 60 cents, and said it plans to return $11 billion to shareholders in 2023.
President Joe Biden had blasted oil companies and refiners for much of the last year. He has urged the companies to invest their profits into boosting production to reduce prices before considering shareholder returns.
ConocoPhillips expects capital expenditure to be between $10.7 billion and $11.3 billion this year that includes spending on its Willow oil and gas drilling project in Alaska, which received a scaled-back support from the Biden administration on Wednesday.
Production was 1.758 million barrels of oil equivalent per day (boed) for the last three months of 2022, an increase of 150,000 boed from the same period a year ago.
“ConocoPhillips finished 2022 on a solid note with production volumes exceeding consensus forecasts by 1.5%,” said Third Bridge analyst Peter McNally.
Current-quarter production is expected to be between 1.72 million and 1.76 million boepd.
Shares, however, fell 3% to $114.30 in early trading on profit miss and lower oil prices.
On an adjusted basis, the company posted a profit of $2.71 per share, missing expectations of $2.81, as per Refinitv data.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
