US oil producer ConocoPhillips has made a profit of $2.62bn in the fourth quarter of 2021, compared to loss of $772m in the same quarter in the previous year.

For the quarter that ended on 31 December 2021, the firm reported adjusted earnings of $3bn, excluding special items, against an adjusted loss of $201m in Q4 2020.

The firm’s full-year 2021 earnings stood at $8.1bn, compared to a loss of $2.7bn in 2020.

Without including special items, the full-year 2021 adjusted earnings were $8bn, against an adjusted loss of $1bn in 2020.

ConocoPhillips stated that the rise in earnings and adjusted earnings during Q4 2020 was due to higher realised prices and volumes. This was, however, partially offset by increased operating costs related to higher volumes.

ConocoPhillips chairman and CEO Ryan Lance said: “Our strong fourth-quarter results capped a transformative year for our company as we continue to deliver on our triple mandate.

“During 2021, we strengthened our outstanding low-cost supply portfolio. We closed and successfully integrated the Concho acquisition while exceeding our synergy targets, acquired and began to integrate the accretive Shell Permian position into our portfolio, and announced both the sale of our Indonesia assets, and acquisition of additional interest in APLNG.”

Excluding Libya, the firm reported a production rate of 1.567 million barrels of oil equivalent per day in Q4 2021.

The cash from operating activities in the last quarter of 2021 stood at $5.9bn and, excluding a $400m change in operating working capital, the generated cash from operations (CFO) was $5.5bn.

For the full year, cash from operating activities was $17bn and, after excluding a $1.3bn change in operating working capital, the generated CFO stood at $15.7bn. 

The company declared 46 cents per share as quarterly ordinary dividend that is payable on 1 March 2022 to stockholders of record.

It also announced a second quarter variable return of cash (VROC) payment of 30 cents per share that is payable on 14 April 2022.

The firm’s operating plan capital budget for 2022 is $7.2bn.

This plan features funding for major projects, exploration and appraisal activities, ongoing development drilling programmes, and base maintenance.

It also plans to allocate $200m for projects to cut down the intensity of Scope one and two emissions, and fund investments in early-stage low-carbon opportunities.

The firm’s production guidance for this year is 1.8 million barrels of oil equivalent per day (MMboed), including Libya. This production guidance does not include impacts from the pending Indonesia disposition and the acquisition of additional APLNG shareholding interest.

It expects its Q1 2022 production rates to be between 1.75MMboed and 1.79MMboed, which is similar to Q4 2021 on a pro forma basis.

In December 2021, ConocoPhillips agreed to sell its assets in Indonesia to the local oil and gas company MedcoEnergi, for $1.355bn.