Oil firm Total profits fall

Published:  1 May at 6 PM

As reported by the BBC, French oil company Total has announced a drop in profits, blaming lowered demand and expensive raw material prices at its European petrochemicals firm. Net income for 2012’s first three months was 3.66 billion euros (£3 billion), down by 7% from one year ago. But sales went up by 11% to 51.17 billion euros.

The firm also reports that asset sales have reduced refining output. Italian oil firm ENI also announced a 42% increase in its first quarter profits to 3.62 billion euros. CEO Paolo Scaroni said that ENI delivered great results due to the continued recovery in production in Libya as well as higher oil prices.

However, despite higher petroleum prices, Total says that lowered demand for petrochemicals are hitting hit profits. CEO Christophe de Margerie says that, in terms of petrol prices which were good for upstream but bad for chemicals and refining, the company is satisfied with the first-quarter numbers.

Royal Dutch Shell has also announced an 11% surge in profits, which jumped to $7.66 billion (£4.74 billion) during its first quarter. US oil giant Exxon saw its profits fall by 11% to $9.5 billion after petrol production fell by 5%.