Total Group's net profit up 39% in Q2; chemicals show a dismal drop of 70% YOY

02-Aug-08

French oil, gas and petrochemicals group, Total chemicals showed a 70% YOY drop in adjusted net operating income in the Q2 to US$109 mln on narrower margins. The rapidly mounting naphtha prices coupled with a slowing demand in Atlantic led to feeble margins for petrochemicals for Q2 of 2008. However, the chemicals segment's sales of Q2 were up 8% to €5.48 bln from €5.23bln, while adjusted operating income dropped 75% to €78 mln from €312 mln for corresponding period previous year. Considering the H1 period, the chemical segment's sales rose 6% to €10.71 bln and its adjusted net operating income fell 56% to €228 mln. Owing to feeble margins, Total's chemicals unit recorded a net loss of €23 mln compared with a net income of €110 mln in the Q2 last year but sales were up 13% at €3.63 bln from €3.42 bln. The specialties division's adjusted net operating income fell 22% to €97 mln from €124 mln for Q2 of 2007, although sales from the unit came in at €1.85 bln, down a mere 1%. Contrary to the sluggish performance in chemicals, the group's consolidated net income rose 39% YOY in the Q2 to €4.73 bln on higher crude and natural gas prices while the sales rose 23% to €48.2 bln and its adjusted operating income was €7.78 bln, up 35% from Q2 of 2007, according to the company. For H1, Total's net income rose 29% to €8.33 bln and its sales were up 21% to €92.4 bln, it added.