Similar to the scenario in the U.S., European oil company profits fell during the third quarter of this year primarily due to narrow refining margins. The economic slowdown has hit European oil demand, leaving European refineries with overcapacity and shrinking margins.
Paris-based Total's net profit fell by 17.0 percent from the same period last year to 2.8 billion euros (US$3.8 billion). Net adjusted profit fell 19 percent to 2.7 billion euros ($3.72 billion) in the third quarter compared to the same quarter a year ago
Finland's Neste Oil's revenue increased to EUR 4,630 million (US$6.23 billion) in the third quarter from EUR 4,505 million during the same period in 2012, mainly as a result of higher sales volumes and growth at Renewable Fuels. The Groups comparable operating profit came in at EUR 217 million compared to EUR 159 million for the corresponding period in 2012. Oil Products third-quarter comparable operating profit was EUR 67 million compared to 154 million during the same period in 2012. The Groups IFRS operating profit was EUR 249 million compared to 196 million, which was mainly impacted by inventory gains totaling EUR 26 million compared to 87 million. Pre-tax profit was EUR 233 million compared to 172 million, profit for the period EUR 194 million compared to 131 million.
Italy's Eni, reported adjusted operating profit of 3.44 (US$4.63) billion for the quarter, down 15.7%; and 9.1 billion for the nine months, down 35.2%, as political turmoil in Libya cut production. Adjusted net profit was 1.17 billion for the quarter down 29.4%; and 3.13 billion for the nine months, down 41%. Net profit was 3.99 billion for the quarter, up 61.9%; and 5.81 billion for the nine months, down 5.8%.
Norway's Statoil`s net operating income of NOK 39.3 billion (US$6.36 billion) in the third quarter was positively impacted by gain from sale of assets. Refinery impairments and commercial provisions impacted the financial result negatively. The adjusted earnings were NOK 40.4 billion, which is in line with the same period last year. Statoil`s net operating income was NOK 39.3 billion compared to NOK 40.9 billion in the third quarter of 2012. Adjusted earnings were NOK 40.4 billion, compared to NOK 40.0 billion in the third quarter of 2012. Adjusted earnings after tax were NOK 12.1 billion, compared to NOK 11.9 billion in the third quarter of 2012. Net income was NOK 13.7 billion compared to NOK 14.5 billion in the third quarter of 2012.
Spanish oil major Repsol, on November 7, reported a 22 percent drop in third-quarter adjusted net profit from a year ago, hit by production outages in Libya and a steep decline in refining margins. Third-quarter net profit adjusted for one-time items and changes in the value of inventories reached 387 million euros (US$523 million).
And as reported in our November 4 issue, Shell posted earnings on a current cost of supplies basis which strips out the impact of fluctuations of oil prices between when it is produced and when it is sold of $4.25 billion (3.10 billion euros), compared with $6.15 billion in the same quarter a year ago and net profit, which does not strip out those fluctuations, fell to $4.68 billion from $7.16 billion, as well as BP reported a 34 percent drop in third-quarter net profit to $3.5 billion from $5.28 billion in the same period a year earlier.
