UpdateTotal's chemicals net profit slumps 70%

01 August 2008 11:48  [Source: ICIS news]

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MUMBAI (ICIS news)--Total's chemicals unit posted a 70% year-on-year slump in adjusted net operating income in the second quarter to €70m ($109m) on lower margins, the French oil, gas and petrochemicals group said on Friday.

“Petrochemical margins were weak in the second quarter of 2008, reflecting the squeeze of rapidly rising naphtha prices and weakening demand in the Atlantic Basin,” the company said.

For the quarter, the chemicals segment’s sales were up 8% to €5.48bn from €5.23bn, while adjusted operating income dropped 75% to €78m from €312m for the same period last year.

The base chemicals unit recorded a net loss of €23m compared with a net income of €110m in the second quarter last year, mainly due to the lower margins, but sales were up 13% at €3.63bn from €3.42bn.

The specialties division’s adjusted net operating income fell 22% to €97m from €124m in the same period of 2007, although sales from the unit came in at €1.85bn, down a mere 1%.

For the first half period, the chemical segment’s sales rose 6% to €10.71bn and its adjusted net operating income fell 56% to €228m.

At group level, the company’s consolidated net income rose 39% year-on-year in the second-quarter to €4.73bn on higher crude and natural gas prices, the energy and petrochemicals group said on Friday.

For the quarter, the company’s sales rose 23% to €48.2bn and its adjusted operating income was €7.78bn, up 35% from the year-ago period, the company said.

For the first half , Total’s net income rose 29% to €8.33bn and its sales were up 21% to €92.4bn, it added.

“With a solid portfolio of assets, Total is well positioned to continue to benefit from this volatile but favourable oil market environment,” the company added.

Hilde Ovrebekk contributed to this story
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By: Isha Jha
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