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 Operating income at the Downstream unit (Refining, Marketing, LPG, Chemicals and Trading) was €445 million in the Q1of 2011, a 14.1% increase from the same period of the previous year. Excluding inventory effects, operating income was 217 million euros, up 15.4%.
Especially significant was the recovery of volumes and
margins in the chemicals business, which returned to profitability,
posting income €38 million higher than in the year-earlier quarter. In
refining, slightly higher distilled volumes in Spain and the
optimisation of production added €11 million to overall earnings.
Regarding
LPG, bottling margins were in line with the previous year because of
the time-lag in the formula with which they are calculated by the
government of Spain and which negatively affects results. Investment in
the Downstream unit totalled €288 million in the quarter, spent mainly
on the strategic expansion projects of the Cartagena and Bilbao
refineries.
Both these strategic projects
will be put into operation this year, increasing the efficiency of the
business and considerably increasing the volume of diesel produced,
helping reduce Spain’s import needs.
PETROLWORLD 11/05/2011
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