TotalFina hopes to post 33% rise in net profit

Paris

TOTALFINAELF will post a 33 per cent rise in net profit for the first quarter, beating analysts’ expectations of 18 per cent growth, the company’s chairman, Thierry Demarest, said on Thursday.

The Franco-Belgian oil company will report net profit of 2.2 billion euros ($1.94 billion), Mr Demarest said, while speaking to shareholders at the company’s annual meeting.

The chairman attributed the surge in profit to higher crude-oil prices, strength in refining margins and favorable trends in the dollar-euro exchange rate.

TotalFinaElf was scheduled to release full details of its first-quarter results later on Thursday.

Mr Demarest said refining margins in the first quarter were around $19 a metric ton, below the 2000 average of $23.80/tonne but well above 1999’s $9.70/tonne.

Noting that growth in 2000 and in the first quarter was ahead of forecasts as the company benefits from savings from the merger of TotalFina and Elf, Mr Demarest said: “There are lots of strengths but not many weaknesses.”

The chairman’s speech to shareholders was briefly interrupted by a protester who jumped onstage during the address before being removed.


-- The Wall Street Journal