Total's chemicals Q1 profit up 52% on improved demand, margins

29 April 2011 08:06  [Source: ICIS news]

SINGAPORE (ICIS)--Total's adjusted net operating income for its chemicals business in the first quarter of 2011 surged 52% year on year to €238m ($355m) on the back of higher demand and margins, the French oil and gas major said on Friday.

“Petrochemical margins were higher in the first quarter of 2011 than in the first quarter of 2010,” the company said

“The environment for specialty chemicals remained favourable thanks to sustained demand across most of the segment’s market sectors,” it added.

Chemical sales for the first quarter rose 21% year on year to €5.1bn, the company said in a statement.

Sales of base chemicals rose 31% to €3.32bn in the first quarter of 2011, from €2.53bn in the same period a year earlier, while revenues from specialty chemicals rose 6% to €1.79bn.

“The improvement in the results compared to the same quarter last year… was driven mainly by the improvement in the petrochemicals environment as well as by the increased contribution from activities in Qatar and South Korea,” the statement said.

Overall, Total’s adjusted net income rose 35% year on year to €3.1bn, as sales climbed 22% to €46bn, the company said.

Looking ahead, Total is looking to invest in improving the energy efficiency and competitiveness of its Normandy plant and to increase its production capacity in South Korea and Qatar, the company added.

($1 = €0.67)

By: Nurluqman Suratman

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