Total posts drop in profit. Rises production target
French oil company Total reported a 69% drop in its third quarter 2015 net income, compared to the third quarter of 2014. The company’s net income for the quarter was around $1.1 billion, down from $3.46 billion a year ago.
The company’s adjusted net income for the third quarter 2015 was $2.75 billion, down 23% from $3.5 billion income reported a year ago.
Total’s adjusted net operating income from the Upstream business fell to $1,1 billion in the third quarter 2015, a decrease of 60% compared to the third quarter 2014, due to the lower oil prices, partially offset by a decrease in operating costs, and a favorable tax adjustment in Nigeria.
Oil and gas production grew to 2,342 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2015. This is an increase of more than 10% compared to the third quarter 2014, boosted by new project start-ups and ramp-ups from the company’s projects in UK, Angola, and Russia, and the addition of a new concession in the UAE to Total’s portfolio.
Total CEO Patrick Pouyanné said: “In a context where the oil price has fallen by 50% in one year Total was able to demonstrate its resilience by limiting to 23% the decrease in its third quarter adjusted net income of $2.8 billion. The Group is benefiting from its integrated model, production growth and discipline on both investments and operating costs.”
Providing the outlook for the remainder of the year, Total now expect production to increase by at least 9% in 2015, compared to the initially planned 8% increase. The company plans to start production from two of its developments; Laggan Tormore in the UK, and Moho Ph1 B int the Republic of the Congo.
Offshore Energy Today staff