TotalFinaElf earnings slip

A production increase of 14 percent helped European oil giant TotalFinaElf to a profit of 1.64 billion euros, or $1.64 billion, down 29 percent from a year ago. The company essentially matched the second-quarter profit figure. The depreciation of the dollar hurt TotalFinaElf. With oil priced in dollars for world trading, a weaker dollar means the company collects fewer euros for each barrel of oil. In the third quarter, the euro was worth an average of 98 cents U.S., compared with 89 cents per euro in the same quarter a year ago. In recent trading, the two currencies are virtually at par. Liquids production rose 17 percent to 1.6 million barrels daily, while gas flows rose 8 percent to 4.1 billion cubic feet. Upstream operating income rose 9 percent to 2.45 million euros despite the weaker dollar.

As in North America, refining margins were tight, sliding 33 percent as the company’s downstream operating income dropped 83 percent to 107 million euros. Refinery throughput slipped 7 percent to 2.33 million barrels a day due to maintenance projects and other turnarounds.

Chemicals contributed 269 million euros to the profit figure, a gain of 20 percent from a year earlier. Sales slipped 1 percent.