Elf Aquitaine reported a 12% decrease in its consolidated sales to FF59,786 million for the first quarter 1998, in comparison to the same period 1997.

Using total sales as a basis (i.e. sales to third parties outside the Group and sales between the Group's divisions), the different sectors of activity were are follows:

Comments for the first three months of 1998

Upstream: Sales decreased 18.8% to FF11,917 million. This reflects only in part the 33% decrease in the price of oil expressed in dollars, from $21.10 per barrel to $14 per barrel. The effects of this drop are compensated for by a 9% appreciation in the parity between the dollar and the French franc, from FF5.6 to FF6.1, as well as stable gas prices, a strengthening of gas trading activity and the effects of accelerated liftings for the first quarter. Through these favorable destocking effects, commercialized oil and gas production increased during the first quarter 1998, to 1,050 thousand barrels of oil equivalent per day, up 3.4% for the same period 1997, without this tendency being considered as representative for the entire year 1998, or even for the first half of the year.

Downstream: Sales decreased 20.2% to FF33,001 million. The effects of the strong drop in oil prices, which are reflected in a decrease in the price of petroleum products, were not sufficiently compensated for by the appreciation in the parity between the dollar and the French franc and the progression of nearly 8% in commercialized quantities resulting partly from the start-up of the Leuna refinery in Germany. Refining margins in Europe averaged $2.75 a barrel for the first quarter compared to $2.38 a barrel for the same period 1997.

Chemicals: Sales increased 2.6% to FF15,343 million. Basic chemicals increased 0.5% with price effects being compensated for by volumes. Fine and industrial chemicals rose 1.8% thanks to the improvement in the economic climate in this sector. Performance products went up 4.6%, confirming the good performance of the adhesives and electroplating operations.

Health: the 9.6% increase in Sanofi's sales to FF6,227 million (the increase is 12.4% on a comparable group structure) is due essentially to the 17% increase in consolidated sales of its ten leading products. The anti-hypertension drug Aprovel® generated worldwide sales of FF119 million of which FF64 million were consolidated by Sanofi. Aprovel® was gradually introduced on various European markets during the period. The anti-atherothrombotic agent Plavix® was launched in the US in March 1998 and generated sales of FF113 million (consolidated by Bristol Myers-Squibb).

Thomas Saunders (33.1) 47.44.42.30
Catherine Durand (33.1) 47.44.37.76