Refining and petrochemicals

Down sharply in 2002, refining margins showed a clear improvement in the first half-year of 2003. As a result, the earnings reported by oil companies for financial year 2002 were significantly lower than in 2001, but the prospects are brighter for 2003. In the petrochemicals sector, slow demand and higher feedstock prices eroded margins in 2002, especially in Europe and the United States. The financial results for the first part of 2003 seem to indicate that sector profitability will not improve before 2004. (author)