Repsol YPF 2004 chemicals op pfts up 63% to Euro253m

22 February 2005 15:45  [Source: ICIS news]

LONDON (CNI)--Strong sales and wider international margins on base and derivative chemicals in Argentina contributed to a surge in chemicals operating income last year at Repsol YPF.

 

The Spanish-Argentinean energy group said Tuesday that chemicals operating income was up 63.2% year-on-year to Euro253m ($331m). However, its margins on derivative chemicals in Europe shrank compared with 2003.

 

Total petrochemicals sales in 2004 were 4.1m tonnes, versus 4m tonnes in 2003.

 

Repsol said it invested a total of Euro293m in its chemicals business last year, 262% more than in 2003. Most of the investment went towards the acquisition of the Sines complex in Portugal and the start of improvements at Repsol’s Tarragona propylene oxide/styrene monomer (PO/SM) complex designed to make the business more competitive.

 

Group operating income was up 17.8% to Euro4.55bn on sales 12% ahead at Euro41.69bn, with a substantial rise in profits from refining and marketing accounting for most of the improvement.

 

Net income, however, fell 3.5% to Euro1.95bn after deductions of Euro682m in extraordinary provisions and write-offs, almost all of which was booked in the fourth quarter. The provisions included Euro422m for possible tax contingencies, mainly in Spain and Argentina; Euro89m for asset depreciation (chiefly for petrol stations in Brazil and Peru); and Euro140m for contingencies on contracts with Brazil's Petrobras and Oleoducto de Crudos Pesados in Chile.

 

Income before extraordinary and non-recurring items and goodwill amortisation was up 7% at Euro2.86bn.

 

Group operating income in the fourth quarter was 40% higher than October to December 2003 at Euro1.23bn.

 

Repsol enjoyed strong growth in its refining and marketing operations, where full year operating income jumped 36.2% to Euro 1.63bn and margins registered record highs. Operating income in exploration and production rose 12.2% last year to Euro2.64bn. Gas and power profits were up 29.2% at Euro274m.

By: Glenda Thisdell
+44 20 8652 3214

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