28 October 2011 08:20 [Source: ICIS news]
SINGAPORE (ICIS)--French oil and gas major Total said on Friday its chemicals business posted a 7% year-on-year drop in its adjusted net operating income to €239m ($341m) on the back of softer demand for petrochemicals.
The firm’s sales of chemicals in the July-September quarter rose by 5% year on year to €4.67bn, Total said in a statement.
“In the third quarter of 2011, the environment remained globally favourable for specialty chemicals, but deteriorated for petrochemicals due to softer demand,” it said.
The impact of lower petrochemical margins in Europe and the US was offset primarily by stronger results from Qatar and South Korea, the company said.
Adjusted net operating income from its specialty chemicals segment fell by 13% year on year to €109bn in the third quarter, it said.
The slight decrease in specialty chemical results was mainly because of the sale of part of the segment’s resins activities at the beginning of the third quarter, Total said.
In the first nine months of 2011, the chemicals segment posted a 5% year-on-year rise in adjusted net operating income to €724m, while sales were up by 14% at $15.1bn, the company said.
Total’s adjusted net profit rose by 13% year on year to €2.8bn in the third quarter, while sales were up by 15% at €46.2bn.
“The group benefited from improved operational performance in refining and confirmed the solid profitability of its operations, mainly driven by the upstream [business],” said Total chairman and CEO Christophe de Margerie.
In the first nine months of 2011, Total reported a 13% year-on-year increase in its net profit to €8.7bn, while sales rose by 15% to €137.2bn.
($1 = €0.70)
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