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Previous: PETROFINA, 6-K, 1999-01-21 |
Next: PETROFINA, 424B3, 1999-01-21 |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the month of October, 1998
PETROFINA
(Translation of registrant's name into English)
52 Rue de l'Industrie
B-1040 Brussels
Belgium
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities and Exchange Act of
1934.
Yes No X
If "yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b); 82-
<PAGE>
PETROFINA
- --------------------------------------------------------------------------------
PetroFina S.A. October 30, 1998
Public Relations and Communication
- ----------------------------------
PetroFina's quarterly results
PetroFina's share in Group unaudited operational profit at the end of
September 1998 was BEF 16.1 billion, compared to BEF 18.1 billion in
1997. The unaudited profit was BEF 14.9 billion compared to BEF 17.9
billion in 1997 and the cash flow was BEF 43.3 billion compared to BEF
44.4 billion in 1997.
During this period, the Group's European refineries improved their
throughput by 5% and the Fina network increased its sales by 6.2%. In
unfavourable economic conditions, sales of polymers grew by an average
of 1.4% in Europe and in the United States. In paints, the profits of
the Sigma group grew by 22%. These positive developments, however,
could not offset the effects of the collapse in crude oil prices,
reduction in the gas price, lower refining margins in the United
States and the decline in monomer margins in Europe.
PetroFina's share in the unaudited profit for the third quarter of
1998 amounted to BEF 5.2 billion, compared to BEF 7 billion for the
third quarter of 1997. Cash flow for the quarter was BEF 12.3 billion,
compared to BEF 16.3 billion for the third quarter of 1997, which was
particularly good.
Operating performance for the third quarter was affected by the
start-up problems with the Ekofisk II project, by planned shutdowns in
the Groups chemical plants to enable investment works to be carried
out and by some technical problems which led to a reduction in volumes
produced and processed.
During these three months, all the fundamental parameters of the oil
industry were down compared to the corresponding period of 1997: crude
oil prices fell by 33%, American gas prices fell by 17%, refining
margins shrank by 13% in Europe and 36% in the United States and the
dollar fell by 3% against BEF. In chemicals, monomer prices declined
to levels close or equal to historic lows.
The quarterly profits of the Group's various areas of operation carry
the effects of these changes.
UPSTREAM
In the third quarter of 1998, the Group's oil production was 11.3
million barrels and its gas production was 40.4 billion cubic feet,
compared to production of 14.3 million barrels and 50.8 billion cubic
feet in the third quarter of 1997. This reduction was mainly due to
the temporary shutdown of Ekofisk production to allow the new
installations to be connected according to the Ekofisk II plan and due
to technical problems which arose during start-up. The production
should regain its normal level at the beginning of next year.
<PAGE>
In Angola, in deep offshore waters, the Group participated in the
fourth discovery of oil in block 17, which confirms the extraordinary
potential of this licence, where Fina holds 5%.
In Italy, the Group has held a 25% participation in all the
concessions covering the Tempa Rossa field since July, when Lasmo sold
its interest in the field to its four partners who now each hold 25%.
In Alaska, the Badami field, where PetroFina holds 30%, came on stream
at the end of August, more than one month ahead of schedule.
Production should reach 30,000 barrels per day.
In the British sector of the North Sea, the Delilah gas field, where
the Group holds 18.75%, became operational following its connection to
the Hewett field infrastructure.
DOWNSTREAM
In the third quarter of 1998, Group refining throughput (excluding the
Angola refinery) grew by 1.4% compared to the third quarter of 1997,
reaching 681,000 barrels per day.
Sales by the Fina network in Europe increased by 6% in a stagnant
market.
CHEMICALS
The decline in chemical profits is due to lower monomer margins and
programmed shutdowns to allow expansion work to take place.
The Group concluded two agreements with the Solvay group covering
industrial and technical cooperation in the area of high density
polyethylene (HDPE): under the industrial agreement, the two groups
will share the production facilities to be built in Belgium, one by
Solvay and the other by PetroFina, in 2002 and 2005
respectively. The technical agreement provides PetroFina with access
to a worldwide licence to produce HDPE using chrome catalysts, and the
combining by both companies of research and development into
metallocene and other catalysts to be used in HDPE.
The Group has entered into an agreement with Mitsui Chemicals covering
research and development in the area of polypropylenes produced using
metallocene catalysts. This agreement, which extends and expands a
long-standing collaboration, will accelerate the development and
marketing of products with high added-value.
PAINTS
Profits of the Sigma group for the quarter grew by 10% compared to the
same period in 1997. This continued recovery is due to Sigma's
improved performance in the industrial paint sector in Europe and in
the decorative paint sector in Belgium and France.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS THIRD QUARTER (*)
(IN MILLIONS BEF)
<S> <C> <C> <C> <C> <C> <C>
A. Recurrent Income per segment
North America Europe and rest of Consolidated
the world
1997 1998 1997 1998 1997 1998
Upstream 413 31 6.489 2.952 6.902 2.983
Downstream 1.424 -170 3.359 3.373 4.783 3.203
Chemicals 1.192 938 1.865 1.125 3.057 2.063
Paints 502 554 502 554
Other activities -239 -248 -287 -338 -526 -586
----- ---- --- ---- ---- ----
Operating income 2.790 551 11.928 7.666 14.718 8.217
Net financial charges -1.204 -902
Taxes -6.208 -2.122
------ ------
Recurrent consolidated net income 7.306 5.193
PetroFina net income (recurrent) 7.020 5.177
Non recurrent charges and revenues -114 55
Consolidated results 7.192 5.248
PetroFina consolidated results 6.957 5.232
Minority interest 235 16
B. non recurrent elements
Capital gains on assets sold
Upstream 261 261
Downstream 10 10
Non cash LIFO inventory write down
Downstream
Chemicals
Other non recurrent charges -114 -121 -114 -121
Taxes on non recurrent items -95 -95
--- ---
Total non recurrent elements 176 -114 -121 -114 55
C. Cash flow 16.286 12.257
D. Data per share (BEF per share)
Net earnings 297 223
Cash flow 695 522
Average number of shares outstanding 23.420.432 23.459.772
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
E. Operating revenues
Upstream 19.718 17.130
Downstream 147.342 131.045
Chemicals 23.853 18.434
Paints 8.428 7.719
Other activities 48 112
Inter-segment sales -14.667 -8.309
------- ------
Consolidated operating revenues 184.722 166.131
F. Operating data
Dollar average rate (BEF/USD) 37,31 36,36
Capital expenditure (Billion BEF) 10,66 14,95
Brent price (USD/barrel) 18,49 12,45
US gas price (USD per thousand 2,40 1,99
cubic feet)
Crude oil production (million barrels) 14,30 11,30
Natural gas production (Billion cubic 50,80 40,40
feet)
Crude processed in refineries 8.382 8.499
(Thousand tons)
Crude oil refinery margin (USD/barrel) 2,50 2,18
Sales of petroleum products 9.516 9.879
(Thousand tons)
Polymer production (tons) 544.394 531.226
(*) Data related to 97 are restated in US GAAP
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS AS AT 30TH SEPTEMBER (*)
(IN MILLIONS BEF)
A. Recurrent Income per segment
<S> <C> <C> <C> <C> <C> <C>
North America Europe and rest of Consolidated
world
1997 1998 1997 1998 1997 1998
Upstream 1.537 617 18.277 11.846 19.814 12.463
Downstream 2.535 1.108 7.648 7.689 10.183 8.797
Chemicals 3.822 3.712 5.022 4.726 8.844 8.438
Paints 1.319 1.607 1.319 1.607
Other activities -634 -742 -717 -562 -1.351 -1.304
---- ---- ---- ---- ------ ------
Operating income 7.260 4.695 31.549 25.306 38.809 30.001
Net financial charges -3.588 -2.912
Taxes -16.498 -10.607
------- -------
Recurrent consolidated net income 18.723 16.482
PetroFina net income (recurrent) 18.063 16.134
Non recurrent charges and revenues -181 -1.296
Consolidated results 18.542 15.186
PetroFina consolidated results 17.904 14.938
Minority interest 635 248
B. non recurrent elements
Capital gains on assets sold
Upstream 284 1.358 604 284 1.962
Downstream 79 965 1.044
Non cash LIFO inventory write down
Downstream -531 -2.013 -2.544
Chemicals -1.738 -1.738
Other non recurrent charges -365 -372 -365 -372
Taxes on non recurrent items -100 291 61 -100 352
---- --- -- ---- ---
Total non recurrent elements 184 -541 -365 -755 -181 -1.296
C. Cash flow 44.416 43.296
D. Data per share (BEF per share)
Net earnings 768 637
<PAGE>
Cash flow 1.904 1.847
Average number of share 23.327.338 23.443.545
outstanding
E. Operating revenues
Upstream 55.833 63.984
Downstream 416.676 402.383
Chemicals 68.619 58.971
Paints 23.385 23.964
Other activities 103 386
Inter-segment sales -39.531 -30.681
------- -------
Consolidated operating revenues 525.085 519.007
F. Operating data
Dollar average rate (BEF/USD) 35,63 36,96
Financial debt (Billion BEF) 90,96 92,82
Capital expenditure (Billion BEF) 27,16 33,65
Brent price (USD/barrel) 18,3 13,24
US gas price (USD per thousand cubic feet) 2,63 2,10
Crude oil production (million barrels) 38,91 38,00
Natural gas production (Billion cubic feet) 151,31 142,56
Crude processed in refineries (Thousand tons) 24877 25357
Crude oil refinery margin (USD/ 2,43 2,54
barrel)
Sales of petroleum products 28.014 29.302
(Thousand tons)
Polymer production (tons) 1.616.642 1.639.641
(*) Data related to 97 are restated in US GAAP
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS THIRD QUARTER(*)
(IN MILLIONS USD)
<S> <C> <C> <C> <C> <C> <C>
A. Recurrent Income per segment
North America Europe and rest of Consolidated
the world
1997 1998 1997 1998 1997 1998
Upstream 11,1 0,9 173,9 81,2 185,0 82,1
Downstream 38,2 -4,7 90,0 92,8 128,2 88,1
Chemicals 31,9 25,8 50,0 30,9 81,9 56,7
Paints 13,5 15,2 13,5 15,2
Other activities -6,4 -6,8 -7,7 -9,3 -14,1 -16,1
----- ---- ---- ---- ----- -----
Operating income 74,8 15,2 319,7 210,8 394,5 226,0
Net financial charges -32,3 -24,8
Taxes -166,4 -58,4
- ----- ------ -----
Recurrent consolidated net income 195,8 142,8
PetroFina net income (recurrent) 188,2 142,4
Non recurrent charges and revenues -3,1 1,5
Consolidated results 192,8 144,3
PetroFina consolidated results 186,5 143,9
Minority interest 6,3 0,4
B. non recurrent elements
Capital gains on assets sold
Upstream 7,2 7,2
Downstream 0,3 0,3
Non cash LIFO inventory write down
Downstream
Chemicals
Other non recurrent charges -3,1 -3,3 -3,1 -3,3
Taxes on non recurrent items -2,6 -2,6
---- ----
Total non recurrent elements 4,8 -3,1 -3,3 -3,1 1,5
C. Cash flow 436,5 337,1
D. Data per share (USD per share)
Net earnings 8,0 6,1
<PAGE>
Cash flow 18,6 14,4
Average number of shares outstanding 23.420.432 23.459.772
E. Operating revenues
Upstream 528,5 471,1
Downstream 3.949,1 3.604,1
Chemicals 639,3 507,0
Paints 225,9 212,3
Other activities 1,3 3,1
Inter-segment sales -393,1 -228,5
------ ------
Consolidated operating revenues 4.951,0 4.569,1
F. Operating data
Dollar average rate (BEF/USD) 37,31 36,36
Capital expenditure (Billion USD) 0,29 0,41
Brent price (USD/barrel) 18,49 12,45
US gas price (USD per thousand 2,40 1,99
cubic feet)
Crude oil production (million barrels) 14,30 11,30
Natural gas production (Billion cubic 50,80 40,40
feet)
Crude processed in refineries 8.382 8.499
(Thousand tons)
Crude oil refinery margin (USD/ 2,50 2,18
barrel)
Sales of petroleum products 9.516 9.879
(Thousand tons)
Polymer production (tons) 544.394 531.226
(*) Data related to 97 are restated in US GAAP
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS AS AT 30TH SEPTEMBER
(IN MILLIONS USD)
<S> <C> <C> <C> <C> <C> <C>
A. Recurrent Income per segment
North America Europe and rest of Consolidated
the world
1997 1998 1997 1998 1997 1998
Upstream 43,1 16,7 513,0 320,5 556,1 337,2
Downstream 71,1 30,0 214,7 208,0 285,8 238,0
Chemicals 107,3 100,4 140,9 127,9 248,2 228,3
Paints 37,0 43,5 37,0 43,5
Other activities -17,8 -20,1 -20,1 -15,2 -37,9 -35,3
----- ----- ----- ----- ----- -----
Operating income 203,8 127,0 885,5 684,7 1.089,2 811,7
Net financial charges -100,7 -78,8
Taxes -463,0 -287,0
------ ------
Recurrent consolidated net income 525,5 445,9
PetroFina net income (recurrent) 507,0 436,5
Non recurrent charges and revenues -5,1 -35,1
Consolidated results 520,4 410,9
PetroFina consolidated results 502,6 404,2
Minority interest 17,8 6,7
B. non recurrent elements
Capital gains on assets sold
Upstream 8,0 36,7 16,3 8,0 53,1
Downstream 2,1 26,1 28,2
Non cash LIFO inventory write down
Downstream -14,4 -54,5 -68,8
Chemicals -47,0 -47,0
Other non recurrent charges -10,2 -10,1 -10,2 -10,1
Taxes on non recurrent items -2,8 7,9 1,7 -2,8 9,5
---- --- --- ---- ---
Total non recurrent elements 5,2 -14,6 -10,2 -20,4 -5,1 -35,1
C. Cash flow 1.246,6 1.171,4
D. Data per share (USD per share)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Net earnings 21,5 17,2
Cash flow 53,4 50,0
Average number of share outstanding 23.327.338 23.443.545
E. Operating revenues
Upstream 1.567,0 1.731,2
Downstream 11.694,5 10.887,0
Chemicals 1.925,9 1.595,5
Paints 656,3 648,4
Other activities 2,9 10,4
Inter-segment sales -1.109,5 -830,1
-------- ------
Consolidated operating revenues 14.737,2 14.042,4
F. Operating data
Dollar average rate (BEF/USD) 35,63 36,96
Financial debt (Billion USD) 2,50 2,69
Capital expenditure (Billion USD) 0,76 0.91
Brent price (USD/barrel) 18,30 13,24
US gas price (USD per thousand 2,63 2,10
cubic feet)
Crude oil production (million barrels) 40,40 40,20
Natural gas production (Billion cubic 157,00 146,90
feet)
Crude processed in refineries 24.877 25.357
(Thousand tons)
Crude oil refinery margin (USD/ 2,43 2,54
barrel)
Sales of petroleum products 28.014 29.302
(Thousand tons)
Polymer production (tons) 1.616.642 1.639.641
(*) Data related to 97 are restated in US GAAP
* * *
This press release is also available in French
This press release is also available in Flemish
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
PETROFINA
Date: January 21, 1999 By: /s/ Francois Vincke
----------------- ---------------------------
Name: Francois Vincke
Title: Secretary General
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