Total Profits Surge on High Oil Price

Tue May 6, 2003 02:58 AM ET

PARIS (<a href=reuters.com>Reuters) - French oil firm TotalFinaElf posted a forecast-beating 49 percent rise in first quarter profits on Tuesday on a surge in crude and fuel prices fueled by war and civil unrest in key oil producer nations.

One dealer said the results were "top end across the board" -- reflecting similar outperformance throughout the industry in results last week.

Total's net earnings improvement to 2.12 billion euros was at the top end of analysts' forecasts but trailed those of super majors BP, Royal Dutch/Shell and Exxon Mobil which all reported record earnings doubled or more from a year ago.

Analysts expected net profit to come in at 2.04 billion euros with forecasts in a 1.9-2.17 billion euro range. War in Iraq, strikes in Venezuela and civil unrest in Nigeria disrupted supplies and forced the price of oil and fuel higher.

The company's production growth also contributed to the better result, helping to offset a poor performance from its chemicals business.

The world's fourth largest oil group by stock market value which reports in euros, is more exposed to a weaker dollar than the big three, and benefits less directly from strong crude oil.

SHORTER NAME, STRONGER GROWTH

Later on Tuesday, TotalFinaElf is set to drop the second part of its name, acquired in recent years through the acquisition by Total of Belgium's Fina and Elf of France.

With its name shortened to Total, the company is still delivering better output growth than the other three, at five percent in the quarter.

It reaffirmed its target of five percent growth for 2003 as a whole, compared with flat to three percent among the other supermajors.