ConocoPhillips (NYSE:COP)

Operating Profit Margin

The operating profit margin exhibited a significant improvement starting from negative territory in early 2020, specifically a decline of -12.74% at year-end 2020. This metric then shifted into positive territory and showed a consistent upward trend through 2021 and into 2022, peaking around 37.27% at the end of 2022. From early 2023 onward, the margin demonstrated a gradual decline, stabilizing at approximately 25.41% by mid-2025, indicating a reduction in operational profitability but maintaining a relatively strong margin compared to earlier periods.

Net Profit Margin

Reflecting a similar pattern to the operating profit margin, the net profit margin was initially negative at -14.38% by the end of 2020. It then recovered steadily, reaching a high point of roughly 24.34% in the third quarter of 2022. Beginning in 2023, there was a discernible downward trend with net profit margins decreasing to around 15.89% by the middle of 2025. This suggests decreasing overall profitability net of all expenses and taxes, though still considerably improved relative to the negative margins during the early pandemic period.

Return on Equity (ROE)

Return on equity moved from a negative return of -9.05% at the end of 2020 to a strong upward trend in 2021 and 2022, reaching a peak of 38.91% at the end of 2022. After this peak, ROE declined steadily during 2023 and into 2024 and 2025, reaching around 14.01% by mid-2025. This pattern reflects an impressive recovery and capital efficiency improvement post-2020, followed by a moderation in equity profitability in the most recent periods.

Return on Assets (ROA)

The return on assets started from a low and negative point near -4.31% at the end of 2020, then increased gradually through 2021 to a peak near 19.91% at the end of 2022. From early 2023 onwards, ROA showed a decreasing trend, settling around 7.49% by mid-2025. This decline indicates a reduction in the efficiency of asset utilization to generate profit in the latter periods, although the levels remain significantly above the initial negative values.

Overall Trends and Insights

All four profitability and efficiency metrics—operating profit margin, net profit margin, ROE, and ROA—show a clear recovery trajectory beginning after a period of negative performance at the end of 2020, presumably tied to macroeconomic challenges during that period. The peak performance generally occurred between late 2021 and the end of 2022, after which a pronounced downward adjustment is evident across all indicators. This indicates a cycle of strong recovery and profitability gains possibly due to market conditions and operational improvements, followed by a period of normalization or increased pressure on profit margins and returns in the subsequent years through mid-2025.

Operating Income (Loss)

The operating income showed significant volatility during the initial quarters, with a substantial loss of -$1,457 million in March 2020, followed by positive income in June 2020, but then negative again in September and December 2020. From March 2021 forward, the operating income demonstrated a strong upward trend, peaking at $8,003 million in March 2022. After this peak, a gradual decline is observed, with values decreasing over subsequent quarters but remaining positive. The values fluctuate moderately in the 2023 and 2024 periods, indicating stabilized but reduced profitability compared to the peak in early 2022. By mid-2025, operating income shows some recovery.

Sales and Other Operating Revenues

Sales and revenues initially dropped sharply from $6,158 million in March 2020 to $2,749 million in June 2020, reflecting a significant downturn. Starting in September 2020, revenues steadily increased through 2021, reaching a high of $15,120 million in December 2021. This upward momentum continued into 2022 with peak revenue of $21,161 million in June. However, beginning in late 2022, revenues declined through much of 2023 and early 2024, hitting a low in June 2024. A slight recovery trend appears thereafter, with some quarters in late 2024 and early 2025 showing increased revenues again. The overall pattern indicates recovery from the 2020 trough, reaching record highs in 2021-2022, followed by cyclical declines and partial rebounds.

Operating Profit Margin

Operating profit margin data begins only in September 2020, showing a negative margin of approximately -12.7%. From December 2020 onwards, there is a clear improvement with margins turning positive and rising steadily. Margins peaked near 37% through much of 2022, indicating strong profitability during this period. Starting in 2023, a gradual decline in margin is observed, dropping to about 25% by mid-2025. Despite this decline, margins remain robust compared to earlier periods, suggesting efficient cost management relative to revenues even as operating income and revenues experience fluctuations.

Overall Trends and Insights

The financial data highlights the impact of a sharp downturn in early 2020, followed by a strong recovery through 2021 and into 2022. Operating income and revenues both reached significant highs in early 2022, concurrent with elevated operating margins above 35%, reflecting strong operational performance and favorable market conditions. Following the peak, there is a discernible downward trend in income, revenues, and margins throughout 2023 and into 2024, marking a phase of correction or market adjustment. Margins, while declining, remain at healthy levels suggesting the company maintained relative cost effectiveness. The partial rebound in late 2024 and early 2025 indicates potential stabilization or turnaround in business conditions. The data patterns imply sensitivity to external market factors with a capacity for substantial profitability when conditions are favorable.

The financial data reveals several notable trends in profitability, revenue, and net income over the reported periods. A detailed analysis follows:

Net Income (Loss) Attributable to ConocoPhillips

The net income demonstrates significant volatility in the earlier periods, starting with a substantial loss of US$ 1,739 million at the end of March 2020. This is followed by fluctuations, including a positive income of US$ 2,627 million by December 2021. From 2022 onward, net income remains positive and generally increases, peaking at US$ 5,759 million in March 2022. However, subsequent figures show a gradual decline, though remaining positive through June 2025, where net income stands at US$ 1,971 million. This suggests recovery and stabilization after the initial losses, with some variability in recent quarters.

Sales and Other Operating Revenues

Sales and operating revenues show clear growth from March 2020 to June 2022, rising from approximately US$ 6,158 million to a peak of US$ 21,161 million. This period reflects a significant expansion in business activity or improved market conditions. However, from mid-2022 onward, a downward trend is evident, with revenues reducing to US$ 14,004 million by June 2025. Despite this decline, revenues remain above pre-2021 levels, indicating sustained business volume but with some recent retrenchment or market challenges.

Net Profit Margin

The net profit margin was negative or minimal in the first half of 2020 but increased markedly from the latter half of 2020. It rose steadily to a high of approximately 24.34% in June 2022. Beyond that peak, the margin trends downward gradually, reaching around 15.89% by June 2025. This trajectory indicates initial recovery followed by a mellowing phase, where profitability remains strong but at a reduced margin compared to the peak.

In summary, the company experienced losses at the onset followed by a robust recovery period marked by rising revenues and profitability through mid-2022. After peaking in early to mid-2022, financial performance shows signs of moderation in revenue growth and profit margins while maintaining positive net income, suggesting a more cautious or stabilized operational phase in recent quarters.

The analyzed financial data reveals distinct trends in profitability and shareholder equity over the course of multiple quarters.

Net Income (Loss) Attributable to ConocoPhillips (US$ in millions)

The net income exhibited significant fluctuations initially, with a major loss of -1,739 million US dollars recorded at the end of the first quarter of 2020. This was followed by a recovery period where income values rose back into positive territory, reaching incremental increases with occasional decreases. From March 2021 onwards, the net income showed a strong upward trajectory, peaking at 5,759 million US dollars in March 2022. Following this peak, the figures generally decreased but remained positive, settling between approximately 1,971 million and 3,007 million US dollars in the later periods from 2023 through mid-2025. This pattern suggests cyclical earning behavior with recovery after 2020 losses and stabilization at a high level relative to the early data points.

Common Stockholders' Equity (US$ in millions)

Equity values show a pattern of steady growth over the entire period under review. Starting at about 31,315 million US dollars in March 2020, equity values dipped slightly toward the end of 2020 but then experienced a strong upward surge beginning in early 2021. The figure rose consistently to surpass 65,000 million US dollars by mid-2025, indicating robust capitalization and potential reinvestment of earnings. The steady increase reflects accumulation of retained earnings and possibly additional equity financing, signaling financial strength and shareholder value growth.

Return on Equity (ROE, %)

ROE figures were not available for some early periods but generally showed an improving trend over time. Initially negative at -9.05% near the end of 2020, ROE turned positive and rose significantly through 2021 and into early 2022, peaking at 38.91%. After this peak, ROE gradually declined but remained strong, staying above 14% up to mid-2025. The trajectory of ROE aligns with rising net income and increasing equity, indicating efficient use of shareholders' funds and high profitability relative to equity during the peak periods, followed by a normalization to a still healthy return range.

Overall, the financial data reveals substantial recovery and growth in income and equity following the initial negative impacts in early 2020. Profitability ratios improved markedly, reflecting enhanced operational effectiveness and capital management. Despite some volatility, the company's financial strength appears to have consolidated through consistent equity growth and sustained profitability well into the forecasted quarters.

The financial data reveals several notable trends over the periods analyzed. Net income attributable to the entity exhibited significant volatility initially, with a substantial loss recorded in early 2020. However, from mid-2020 onwards, profitability improved markedly, showing positive and increasing net income figures through most subsequent quarters. Peaks in net income appear around early 2022, reaching the highest values, followed by a general decline but maintaining positive earnings up to mid-2025. This indicates a recovery and growth phase after initial losses attributed to earlier periods.

Total assets showed a steady increase from the beginning of the period through the end of 2024. Starting with approximately 65 billion US dollars, assets rose consistently to over 124 billion US dollars by mid-2025. This growth in total assets suggests ongoing investment and expansion activities, reflecting strengthening financial capacity and possibly enhanced operational capabilities.

Return on assets (ROA) data, available starting from late 2020, presents a clear upward trajectory initially, moving from negative territory to positive and strong double-digit percentages by early 2022. After peaking above 19% in late 2021 to early 2022, ROA gradually declined but remained in a healthy positive range, above 7%, through mid-2025. This trend indicates improving efficiency in generating earnings from the asset base, followed by stabilization at a solid performance level.

Net Income (Loss) Attributable to ConocoPhillips (Million US$)

Initial large losses in early 2020 transitioned to sustained positive earnings from mid-2020 forward, peaking in early 2022 above 5.7 billion US$, followed by a moderate decline but positive results through 2025.

Total Assets (Million US$)

Demonstrated consistent growth throughout the period, nearly doubling from around 65 billion US$ in early 2020 to over 124 billion US$ by mid-2025, indicating asset growth and expansion.

Return on Assets (ROA %)

Shifted from negative to strong positive performance from late 2020 to early 2022, peaking near 20%, then moderated but consistently above 7% through mid-2025, showing sustained efficient asset utilization.