20 October 2005 21:19 [Source: ICIS news]
HOUSTON (ICIS news)--Canada's Imperial Oil saw net income in its chemicals business decline 63% in the third quarter due to lower margins, the company reported on Thursday.?xml:namespace>
Imperial's chemicals net income for the three months ended 30 September was Can$12m ($10m/Euro8.3m), down from Can$33m in the 2004 third quarter.
Lower polyethylene (PE) and benzene industry margins were the main factors for the decrease, Imperial said.
Chemical revenues declined by 7.3% to Can$314m.
Average petrochemical sales volumes dropped to 3,000 tonne/day, from 3,300 tonne/day in the 2004 third quarter.
Imperial's chemical operations in Canada include a cracker and a PE plant at Ontario's Sarnia petrochemicals hub.
Overall, the Calgary, Alberta-based energy firm recorded third quarter net income of Can$652m, up 19.8% from last year. The company credited higher crude oil and natural gas realisations and refinery margins. But it noted that these positives were partly offset by depressed fuel product marketing margins and the lower chemical margins.
Imperial also said it expects to notify Canadian authorities next month on whether it and its project partners are willing to proceed with public hearings on the proposed Mackenzie Valley natural gas pipeline project.
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