Soc Gen Profit Tumbles, Total Net Surges on Higher Prices and Low Cost

Sarla Buch
08 Feb, 2018
New York City

Akzo Nobel forecasted revenues growth of 3%. Societe Generale profit declined after restructuring costs and tax-related charges. Total S.A. profit soared 86% on higher prices. Vinci net and revenues jumped. Zurich Insurance reported strong annual performance.

[R]4:00 PM Frankfurt – Akzo Nobel forecasted revenues growth of 3%. Societe Generale profit declined after restructuring costs and tax-related charges. Total S.A. profit soared 86% on higher prices. Vinci net and revenues jumped. Zurich Insurance reported strong annual performance.[/R]

In London trading, FTSE 100 index declined 62.81 or 0.9% to 7,214.91 and in Frankfurt the DAX index dropped 141.42 or 1.1% to 12,450.63.

In Paris, CAC 40 index slumped 35.56 or 0.7% to 5,220.33.

Akzo Nobel NV jumped 3.3% to €76.94 after the Netherlands-based paints and coatings maker forecasted revenues in the fiscal 2017 to increase 3% from a year ago to €14.6 billion and operating profit of about €1.5 billion.

The paint maker said market continues to develop and grow particularly in Asia and specialty chemicals business delivered strong performance throughout 2017.

Akzo Nobel said separation with its specialty chemicals business will be completed this April.

Societe Generale SA soared 3.9% to €45.97 after France-based insurance and banking provider said revenues in the year ending in December declined 5.3% from a year ago to €23.9 billion.

Net profit in the year tumbled 27.6% to €2.8 billion from €3.9 billion in a year ago period and diluted earnings per share slumped to €2.92 from €4.26.

The lender said net banking income for the quarter advanced 3.2% to €6.32 billion from a year ago period.

Total SA increased 1.8% to €45.54 after France-based oil and gas producer reported revenues in the year ending in December soared 14.5% from a year ago to $171.5 billion.

Net profit in the year jumped 33.9% to $8.3 billion from $6.2 billion in a year ago period and diluted earnings per share slumped to $3.34 from $2.51.

The oil producer said production costs declined to $5.40 for per barrel of oil equivalent, from $9.90 in fiscal 2014.

Vinci SA dropped 2.3% to €81.70 after France-based construction and engineering services provider said revenues in the year ending in December advanced 5.7% from a year ago to €40.2 billion.

Net profit in the year jumped 9.7% to €2.7 billion from €2.5 billion in a year ago period and diluted earnings per share increased to €4.91 from €4.48.

The construction and engineering services provider estimated growth in fiscal 2018 revenues and in contracting margins which increases operating income and net income.

Zurich Insurance Group AG advanced 2.7% to 309.60 Swiss francs after Switzerland-based insurance services provider reported gross written premiums in the year ending in December slumped 4.9% from a year ago to $63.9 billion.

Net profit in the year plunged 6.3% to $3 billion from $3.2 billion in a year ago period and diluted earnings per share dropped to $19.90 from $21.36.

The insurer said decline in profit was driven by natural-catastrophe losses impacted by almost $700 million but the insurer also plans to buy back $1 billion of shares.