Dips in output and prices dent majors’ results

Improved refining margins prove a silver lining as big players unveil disappointing full-year figures

Lower oil and gas prices and ailing production ate into the majors’ profits full-year profits for 2012, but there was a welcome boost from soaring refining margins. Brent oil prices fell to a 16-month low of about $89 a barrel at the end of June 2012 after soaring to $124/b in February. US natural gas prices have traded well below levels seen in recent years, falling to below $2 per million British thermal units (Btu) in April and struggling to pass $3.50/Btu for most of the year. ConocoPhillips’ 2012 full-year earnings were down by a third compared with 2011, at $8.4bn. The company’s 2012 fourth-quarter earnings tumbled by two thirds to $1.4bn as assets sales, lower production and weaker oi