Cepsa's fourth-quarter petchems profits fall 16%

29 February 2008 09:51  [Source: ICIS news]

MUMBAI (ICIS news)--Cepsa's operating income from its petrochemicals segment fell 16% quarter on quarter to €13m ($20m), due to the rise in the cost of raw materials, the Spanish energy company said on Friday.

“This performance was mainly attributable to the fact that end sales prices were not able to keep up with the surge in the acquisition cost of raw materials and to the adverse effect of a firm euro against the dollar, impacting petrochemical businesses,” the company said.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) for the segment in the fourth quarter totalled €35m, down 5% quarter on quarter, Compania Espanola de Petroleos SA (Cepsa) said.

In the full-year period, the petrochemical segment’s operating income was €56m, down 2% year on year, while its EBITDA totalled €133m, up 6% from the previous year. The company’s net income for the period was €638m, down 15% from the year-ago period.

Meanwhile, overall the company posted a 20% quarter-on-quarter fall in fourth-quarter operating income to €206m, on the back of a negative impact by the decline in the value of US dollar and an increase in the global crude oil price, Cepsa said

“Global crude oil prices in the fourth quarter of 2007 surged sharply, with European benchmark Brent blend averaging $88.69/bbl in the last three months of the year, 18% more than the previous quarter and an all-time record high in recent years,” it added.

For the full-year period, the company’s operating income totalled €1bn, down 13% year on year, while its EBITDA hit €1.42bn, down 7% from last year.

($1 = €0.66)

By: Isha Jha
+65 6780 4359

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