Total Q2 Profit Climbs, Revenue Slides; Output Up

(RTTNews) - French oil and gas giant Total SA (TTA.L, TTFNF.PK, TOT) Friday said profit for the second quarter increased from the prior year that included the negative impact of certain items and higher inventory hit.

Adjusted earnings reflected a fall in sales amid lower crude prices, even as production rose year-over-year.

Consolidated net income attributable to group share climbed 67 percent to 2.537 billion euros ($3.37 billion) from the prior year's 1.518 billion euros.

In the just concluded quarter, inventory impact reduced net income by 400 million euros while special items had a positive impact of 262 million euros.

The prior-year results included a 959 million euros negative impact from inventory and 323 million euros impact from special items.

Adjusted net income was 2.70 billion euros while it totaled 2.79 billion euros in the prior year quarter.

Adjusted net operating income from business segments slid 1 percent to 3.025 billion euros. In Upstream segment, the decline was 7 percent at 2.325 billion euros while Refining & Chemicals saw a 2 percent decrease at 370 million euros.

Sales fell 4 percent to 46.973 billion euros from last year's 49.135 billion euros, amid lower hydrocarbon prices.

Hydrocarbon production rose 1 percent to 2.290 million barrels of oil equivalent per day, helped by new projects and restart of production from Elgin/Franklin in the UK North Sea and from Ibewa in Nigeria, partially offset by normal decline and scheduled maintenance. Gas production grew 8 percent while liquid output fell 5 percent in the quarter.

Refinery throughput in the second quarter dropped 6 percent due to the scheduled turnaround at Antwerp and maintenance at Donges, in addition to the closure of the Rome refinery at the end of the third quarter of last year.

Total noted that the Downstream business benefited from the initial benefits of the restructuring program, even though more changes are necessary to strengthen the position.

The stock is up 0.2 percent in early trade at 40.07 euros.