Conoco Reports $31 Billion Loss

Company will undergo cost-cutting measures

ConocoPhillips said Jan. 28 it posted a fourth-quarter loss of $31.8 billion as the company took a hit from after-tax charges and lower crude prices during the final three months.

The loss compares with net income of $4.4 billion, or $2.71 per share, for the same quarter in 2007. Revenues were $44.5 billion, down from $52.7 billion a year ago.

The company incurred an impairment charge of $7.4 billion related to its investment in Russia's Lukoil and a $25.4 billion charge in its exploration and production segment.

"Our financial performance for the quarter reflects the depressed economic conditions and business environment impacting not only our industry, but domestic and global markets as well," said Jim Mulva, chairman and chief executive officer, in a statement.

For the year, the company recorded a loss of $17 billion, or $11.16 per share, compared with 2007 net income of $12 billion, or $7.22 a share.

Mulva said the company will undergo cost-cutting measures to cope with the current economic downturn. Mulva also said he expects the company's first-quarter production will be near fourth-quarter levels.

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