Total profit jumps on higher output
French oil company Total boosted its adjusted net profit during the third quarter of the year by 29 percent helped by production growth, cost cuts, and higher oil and gas prices.
The oil company on Friday reported an adjusted net income of $2.67 billion for 3Q 2017, which is a 29% increase compared to a $2.07 billion net income in the last year’s quarter while the Brent price increased by 14%.
As explained by the company, the increase was the result of a higher contribution from Exploration & Production and the ongoing decrease in the group’s breakeven.
The Exploration & Production segment’s adjusted net operating income was $1.44 billion in the third quarter 2017, an increase of 84% compared to the third quarter 2016, notably due to a 6% production growth, cost reductions, and an increase in oil and gas prices.
Namely, Total’s hydrocarbon production was 2,581 thousand barrels of oil equivalent per day (kboe/d) in the third quarter 2017, an increase of close to 6% compared to the third quarter 2016.
This was due to a 6% increase due to project ramp ups, notably Kashagan, Moho Nord, Surmont, Incahuasi, Angola LNG and Edradour-Glenlivet; +4% portfolio effect, mainly due to taking over the concession for the giant A1-Shaheen oil field in Qatar and acquiring an additional 75% interest in the Barnett shale in the United States, partially offset by the exit from the southern sector of Congo; +1% related to improved security conditions in Libya and Nigeria; and -5% due to natural field decline, maintenance activity, the PSC price effect and OPEC quotas.
Total took over as the operator of the giant 300 kb/d Al-Shaheen field in Qatar and announced the acquisition of Maersk Oil, which will strengthen its position in the North Sea.
Organic investments were $3.1 billion in the third quarter 2017 and $10 billion in the first nine months, in line with the target of $14 billion this year, and cost reduction will be more than $3.6 billion, surpassing the target for the year.
Offshore Energy Today Staff