Total’s chemicals Q4 profit more than doubles, sales up 7%

Nurluqman Suratman

11-Feb-2011

Total Q4 profits doubleSINGAPORE (ICIS)–French oil and gas major Total said on Friday its chemical business’ adjusted net operating profit for the fourth quarter of last year more than doubled to €170m ($230m) on the back of a 7% increase in sales.

In the same period in 2009, the segment posted a net operating profit of €72m. 

Chemical sales for the December 2010 quarter stood at €4.22bn, the company said.

Total said the global business environment during the quarter was “more favourable” than the same period in 2009.

Specialty chemicals had a 30% year-on-year increase in operating income to €109m in the fourth quarter of 2010, while base chemicals swung into earnings of €67m from a €16m loss in the previous corresponding period, the company said.

“The environment for base chemicals [segment] was weaker in the fourth quarter of 2010 than in the third quarter, affected by a decrease in petrochemical margins, particularly in Europe,” it said. Base chemicals’ profit in the fourth quarter was just half of what it was in the third quarter, Total said.

For the full year of 2010, the chemicals segment’s net operating profit more than tripled to €857m from €272m in 2009.

Adjusted net profit for the base chemicals segment rose to €393m in 2010 from just €16m in the previous year, partly due to the ramp-up of new production units in Qatar, Total said.

The firm’s specialties segment had a 70% increase in net operating income to €475m, it added.

In its outlook, the company said that it would continue to improve its competitiveness in its downstream and chemicals segments by starting up new units at the Port Arthur refinery in the US and increasing its presence in growth markets, it said in the statement.

Total’s overall adjusted net profit in 2010 jumped 32% year on year to €10.3bn. Its net income grew 25% year on year to €10.6bn on the back of a 21% increase in sales to €159.3bn, the company said.

($1 = €0.74)

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