Total Q1 Profit Plunges

(RTTNews) - Total SA (TTA.L, TTFNF.PK, TOT) Wednesday announced a sharp decline in first quarter profit as reduced oil prices resulted in 22 percent fall in sales from the previous year.

For the first quarter, net income was $1.606 billion, compared to $2.663 billion in the prior year. Earnings per share plunged to $0.67 from $1.16 a year ago.

On an adjusted basis, net income was $1.636 billion or $0.68 per share. On average, five analysts polled by Thomson Reuters expected the company to earn $0.40 per share. Analysts estimates usually exclude special items.

Patrick Pouyanne, chairman and CEO said, "The Downstream achieved a solid result in line with our annual objectives. Refining & Chemicals improved its results compared to 2015 despite the decrease in refining margins to 35 $/t, thanks to a record high utilization rate of 94% and favorable petrochemicals margins.

Sales revenues were down 22 percent for the quarter to $32.841 billion from $42.313 billion in the previous year. Wall Street expected the company to record revenue of $28.21 billion.

Hydrocarbon production for the quarter increased 4 percent to 2,479 thousand barrels of oil equivalent per day or kboe/d. Meanwhile, average hydrocarbon price, in line with the drop in the Brent price, declined 37 percent to $26.4/b.

Further, the company proposed an interim dividend of 0.61 euros, payable in October 2016.

Looking ahead to 2016, the company expects four percent increase in production, as it expects start up of Angola LNG and Incahuasi by mid year and Kashagan by year end. The company said it refining and petrochemical margins remained strong at the beginning of the second quarter and Downstream is on track to achieve its objective of generating around $7 billion of cash flow in 2016.

The worldwide integrated oil and gas company said its continuing efforts to reduce its cash break-even and is targeting a level of organic investments of less than $19 billion in 2016.

TOT is currently up $0.56 or 1.12 percent in the pre-market.