Results show lubes and chemical improvements


Third quarter results from the lubricants 'majors', plus other key players in the lubes and chemical sectors show continued recovery.

Market leader, Royal Dutch Shell, announced Q3 adjusted earnings for 2010 of $4.9bn, an increase of $2.3bn on the same period last year as the lubes and chemical industry leaders announced their latest figures.  Shell stated that the improvement was a combination of improved industry conditions and internal strategy.

For ExxonMobil, its third quarter saw a 55% boost in earnings at $7.4bn aided by higher crude and gas prices and positive results from its chemicals business. The company also increased its capital and exploration expenditure, increasing this by 18% from the first nine months of 2009 to $22.2bn.

ConocoPhillips more than doubled it's previous year's Q3 earnings of $1.5bn with figures this year of $3.1bn.  Although production was down fractionally, cashflow was helped by the $6bn sale of LUKOIL earlier in the quarter and strength in the chemicals sector.

Lubrizol also continued the strong trend with a 24% lift in third quarter profits.  Net income was $211.m for the quarter from $170.5m for the previous year and sales increased 8.5% to $1.38bn.  The company's solid performance prompted it to raise it's end year earnings guide.

In Europe, Total saw a 32% increase in adjusted net income of €2.5bn ($3.2bn).  The French oil refiner continues its upward trend helped by rising oil and gas prices and improved margins.

Chevron bucked the trend slightly, with earnings down from $3.83bn last year to $3.77bn in Q3 this year, hindered by reduced upstream earnings and the affect of currency exchange rates.  However , the lower quarterly figures were still enough to lift earnings for the first nine months of 2010 to $13.73bn from $7.41bn the previous year.

In the chemical sector, Dow posted better than expected figures with Q3 earnings of more than $1.9bn - a $350m improvement on the same period in 2009 and their highest since Q2 of 2008.  The company benefitted from improving sales, particularly in emerging markets which passed $4bn in the quarter for the first time in Dow's history.