| Consolidated sales for the first nine months of 1998 amounting to FF 165,329 million decreased 13.4 % compared to the same period 1997. For the third quarter alone consolidated sales decreased 16.1 % to FF 52,482 million compared with the same period 1997.
On the basis of their total sales (carried out with third parties outside the Group and with the other divisions of the Group); the different sectors recorded the following trends (in millions of French Francs):
| |
Third quarter |
Nine months |
| |
1998 |
1997 |
Variation |
1998 |
1997 |
Variation |
| Upstream |
6,814 |
11,732 |
- 41.9 % |
26,930 |
38,008 |
- 29.1 % |
| Downstream |
29,180 |
38,444 |
- 24.1 % |
91,589 |
115,622 |
- 20.8 % |
| Chemicals |
15,011 |
14,554 |
+ 3.1 % |
44,562 |
44,211 |
+ 0.8 % |
| Health |
6,105 |
6,473 |
- 5.7 % |
18,995 |
18,581 |
+ 2.2 % |
| Inter-segment sales |
(4,628) |
(8,635) |
|
(16,747) |
(25,467) |
|
| Total |
52,482 |
62,568 |
- 16.1 % |
165,329 |
190,955 |
- 13.4 % |
Comments on the first nine months of 1998
Upstream: Sales in this sector decreased 29.1 % to FF 26,930 million. Essentially this reflects a fall of 28.7 % in the price of oil expressed in French Francs. Average commercialized oil and gas production was 937,000 barrels a day, a decrease of 6 % when compared to the same period 1997 (997,000 barrels of oil equivalent a day). This was due to the decline in the production of mature fields (Lacq in France, and different fields in the North Sea and Gabon), the disposal of assets (in France, Italy and Tunisia) and some production difficulties (more stoppages this summer in the North Sea than in 1997, and a reduction of quotas and ethnical problems in Nigeria). New production coming onstream has not been enough to compensate for the combined effects of the above factors.
Downstream: Sales decreased 20.8 % to FF 91,589 million. The significant decline in the price of refined products expressed in French Francs have only been partially compensated for by the 6 % increase in the quantities sold resulting from the start-up of production at the Leuna refinery in Germany. Refining margins in Europe averaged $ 2.64 a barrel compared to $ 2.72 for the first nine months of 1997.
Chemicals: Sales increased by 0.8 % to FF 44,562 million. Basic chemicals fell 7.8 %, the decrease of petrochemical prices, in line with naphta and crude oil prices, being compensated for by a volume effect. Fine and industrial chemicals rose 10 % thanks to a good level of activity in most sectors and to acquisitions carried out during the period (hydrogen peroxide, reclassification of the thiochemical activities at Lacq from the upstream sector to the chemicals sector). Performance products progressed 8.5 % due to the PMMA (acrylic polymers) acquisition.
Health: The 2.2 % increase in Sanofi’s sales to FF 18,995 million (a 5.5 % increase on a comparable basis) is due essentially to the 10.3 % improvement in the consolidated sales of its top 10 medicines (excluding the new products) and the good activity of sales of medicines registered in western Europe and in North America.
Worldwide sales of the two new products, irbesartan and clopidogrel, showed strong advances. Total worldwide sales for the antihypertensive agent irbesartan (Aprovel® , Avapro® , Karvea® ) reached FF 726 million (FF 303 million was consolidated by Sanofi). Sales of the anti-atherothrombotic drug, clopidogrel (Plavix® , Iscover® ), which was launched in the US in March 1998 and in Europe (Germany and the UK) in the third quarter of this year, reported sales of FF 459 million (FF 15 million was consolidated by Sanofi).
Thomas Saunders (33.1) 47.44.42.30
Catherine Durand (33.1) 47.44.37.76
| |
| |
Investor Relations Contacts |
In Paris : (33) 1.47.44.24.63
In New York : (1) 212.922.3004 |
