Canada’s Nexen has Q1 chems profit jump on prices, costs

04 May 2004 21:17  [Source: ICIS news]

TORONTO (CNI)--Canadian energy and chemicals company Nexen reported Thursday a 230% increase in 2004 first quarter chemicals income on higher prices and reduced costs.

Calgary, Alberta-based Nexen said first quarter income from its chemicals segment

was Can$10m (Euro7.3m/Euro6m) compared to Can$3m in the 2003 first quarter.

Sales were Can$93m, down from Can$98m in the year earlier first quarter, Nexen said.

Nexen produces sodium chlorate, chlorine and caustic soda at locations in North America and Brazil.

Nexen chief executive Charlie Fisher told analysts here today that pricing during the first quarter was firm. In addition, the company managed to reduce costs by shutting down a higher-cost US facility and transferring that production to a low-cost production site in Brandon, Manitoba, Fisher said.

He added: "We think we should have a pretty strong year."

Nexen’s overall first quarter income fell to Can$192m from Can$251m last year with the company citing weaker quarter-over-quarter prices for its oil. First quarter earnings/share (eps) were Can$1.49, down from Can$1.95 as overall sales dropped 7.8% to Can$735m.

By: Stefan Baumgarten
+1 713 525 2653

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