TotalFinaElf reports third quarter 2000 consolidated sales of 30.9 billion euros,

23-Nov-2000

TotalFinaElf reported consolidated sales for the third quarter 2000 of 30.9 billion euros, compared to 20.1 billion euros for the pro forma third quarter of 1999, an increase of 54%. For the first nine months of 2000, the consolidated sales increased to 83.3 billion euros compared to 52.4 billion euros pro forma for the first nine months of 1999, an increase of 59%.

UPSTREAM

Upstream sales increased by 80% in third quarter 2000 compared to the pro forma third quarter 1999. Sales increased by the same percentage for the first nine months of 2000 versus 1999 comparison. The increase is primarily due to the following factors:

The average Brent crude oil price rose to $30.4/b in the third quarter 2000 from $20.6/b in the third quarter 1999, an increase of 48%. For the first nine months of 2000, the average price rose by 78% compared to the same period of 1999 to $28.1/b.

Upstream production rose by 3% in the third quarter 2000 compared to the pro forma third quarter 1999. For the first nine months of 2000, Upstream production rose to 2,108 mboe/d, a 2% increase compared to the pro forma 1999 first nine months. Excluding the impact of crude price variation on the calculation of production volumes on certain types of contracts (PSC and buy-back contracts), production for the first nine months of 2000 increased by 5%.

The dollar rose against the euro by 17% in the third quarter 2000 (average euro/$ 0.90 versus 1.05 in the third quarter of 1999) and by 15% in the first nine months of 2000 (euro/$ 0.94 versus 1.08).

The combined impacts of these factors on the Upstream sales was partially offset by the lag effect in natural gas prices.

DOWNSTREAM

Downstream sales rose by 62% in the third quarter 2000 compared to the pro forma third quarter 1999. For the first nine months of 2000, sales increased by 74%, primarily due to higher oil and refined product prices.

European refining margins rose in the third quarter 2000 to $27.0/t from $9.0/t in the same period last year, an increase of 200%. For the first nine months of 2000, margins rose by 131% compared to the same period last year to $21.3/t.

Marketing margins have been squeezed since the beginning of the year due to delays in passing through the higher refined product prices.

CHEMICALS

Chemical sales increased by 24% in the third quarter 2000 compared to the pro forma third quarter 1999. For the first nine months of 2000, sales increased by 25%.

The sales increase was essentially due to higher prices and volume growth in petrochemical products. In the third quarter 2000, petrochemical margins were squeezed by increases in feedstock prices.

As a result of the favorable market parameters and the self-help measures initiated across all of the business segments, the net income, Group share, for the third quarter 2000 rose to approximately 2.1 billion euros compared to 0.9 billion euros in the third quarter 1999. Expressed in dollars, the increase is approximately 104%, which is comparable to the performance reported by the other major oil companies.

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