Total Q1 petchems operating income drops 48%

07 May 2008 09:15  [Source: ICIS news]

LONDON (ICIS news)--Total’s chemicals unit posted a 48% year-on-year drop in first-quarter adjusted operating income to €198m ($309m) from €381m in the same period a year agodue to smaller margins, the French energy major said on Wednesday.

 

Segment sales including base chemical and specialities increased 5% year on year to €5.2bn, the company said.

 

“Following a sharp decline in the fourth quarter of 2007, European petrochemical margins recovered slightly in the first quarter 2008 but remained well below the level of the first quarter 2007, notably for aromatics,” the company added.

 

Adjusted net income from base chemicals dropped 68% year on year to €61m from €89m but it grew 5% in specialties to €98m on better margins.

 

“The results of the specialities were generally stable compared with the first and fourth quarters of 2007 dispite weaker economic conditions in the US and Europe,” it said.

 

The company said margins continued to be put under pressure as a result of high naphtha prices and a decline in European demand.

 

“The coming months should reflect the benefit of the gradual production ramp-up at the Moho Bilondo field in Congo Brazzaville and the start-up of production from the Jura discovery in the UK North Sea," Total added.

 

“The Al-Jubail refinery project in Saudi Arabia in partnership with Saudi Aramco should be proposed for approval soon,” it said.

 

Across the group, the company’s adjusted operating income in the first quarter increased 24% to €7.1bn from the same period a year ago while sales were up 19% to €44.2bn.

 

($1 = €0.64)

 

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Author: Lucy Craymer
+44 20 8652 3214

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