During the Elf Aquitaine Annual Shareholders' Meeting held here today, Philippe Jaffré, Chairman and CEO gave some indications concerning the outlook of the Group's results for the first part of this year.
During the first four months of 1998, or to the end of April, Elf's net income before special items was at a similar level for the same period in 1997. The appreciation in the parity between the dollar and the French franc, continued cost reduction as well as the good performance of the chemicals, health and especially the refining and marketing activities thus compensated for the negative effect of the drop of nearly $6 in the average price of a barrel of oil for the same period.
In a context of weak visibility on the oil price level during the month of June and a significant decline in refining margins for the second part of May, it is difficult to give an estimate for the first half year results. Except for a significant deterioration in the economic environment from now until the end of June, Mr. Jaffré indicated that he did not foresee net income before special items significantly different from the first half of 1997, which was FF4.9 billion.
For the entire year 1998, numerous uncertainties remain as to the oil price levels, refining margins and petrochemicals environment. However, Mr. Jaffré indicated that, setting aside the fluctuations of the economic and monetary conditions in order to reason with an average economic climate, the Group's net income should continue to improve, as it has done since 1993, due to the effects of cost reduction and internal growth.
Thomas Saunders (33.1) 47.44.42.30
Catherine Durand (33.1) 47.44.37.76 |
