The Group share of consolidated net income for the first half of 2000 rose to 360 million euros, from 243 million euros for the first half of 1999. Operating income increased to 759 million euros, from 490 million euros for the same period last year.
- Upstream operating income for the first half of 2000, mainly comprising crude oil and natural gas production in Norway and the United Kingdom, was 486 million euros, compared with 130 million euros for the first half of 1999.
- Downstream (Refining/Marketing) activities, chiefly carried on in Belgium, Germany and Luxembourg, saw operating income of 169 million euros for the first half of 2000, up from 108 million euros for the first half of 1999.
- Operating income for the Petrochemical business for the first half of 2000 amounted to 69 million euros, compared with 218 million euros for the first half of 1999, i.e. a significant fall, due in particular to the disposal, at the end of 1999, of US subsidiaries within the TotalFinaElf Group.
- Operating income for the Paints business remained steady at 35 million euros, compared with 34 million euros for the first half of 1999.
The economic environment had a strong positive impact on results. The average Brent crude oil price rose sharply to $26.9 per barrel in the first half of 2000, from an average of $13.4/b in the first half of 1999. The dollar strengthened by 13.5% against the euro to $0.96 to the euro in the first half of 2000, from $1.09 to the euro in the first half of 1999. European refining margins rose to $18.5 per ton from $9.4 per ton. Petrochemical margins also improved, particularly for businesses involved in monomers.
As regards operating income, the favorable environment more than offset the impact of changes in the consolidation base (asset disposals in Europe and in the United States).
As of June 30, 2000, TotalFinaElf owned 98.76% of PetroFina’s share capital. On September 5, 2000, the Board of Directors of TotalFinaElf approved the launch of a Public Exchange Offer for the 1.24% of PetroFina's share capital still not held by the TotalFinaElf Group.
* PetroFina's (unaudited) financial statements have been prepared using generally accepted accounting principles in the US (US GAAP) and adopt for the first half of 2000 the policies applied by TotalFinaElf. In applying these principles, PetroFina's financial statements have been dealt with using the " Purchase Method " and incorporate, in particular, the amortization of goodwill recorded on the acquisition of the Petrofina shares by TotalFinaElf, i.e. EUR 120 M, in addition to an adjustment in 2000 of the value of crude oil and petroleum product stocks in accordance with the FIFO method (LIFO method used for the first half of 1999), i.e. an impact of EUR 60 M. Thus, ignoring amortization of goodwill, PetroFina's LIFO net profit for the first half of 2000 rose to 420 million euros from 243 million euros for the first half of 1999.
Consolidated balance sheet
Consolidated statements of income |
