Chevron, along with most notably…
Citi analysts are suggesting that…
Total (NYSE:TOT) reported on Friday a 48-percent jump in its third-quarter net profit as increased production and higher oil prices helped the French oil and gas major to book its highest income in a quarter since 2012, beating analyst estimates.
“Total’s third quarter adjusted net income increased by 48% from last year to $4.0 billion, while oil prices increased by 44% to 75 $/b supported by supply tensions and the geopolitical context,” Total’s chairman and chief executive Patrick Pouyanné said in a statement, commenting on the Q3 earnings.
Total’s debt-adjusted cash flow (DACF) rose by 37 percent to US$7.5 billion. Cash flow from operations increased by 31 percent on the year to US$5.7 billion in the third quarter.
“These results confirm the Group’s ability to take full advantage of the favorable environment and to deliver on its objectives for production growth and cost discipline thanks to very good operational efficiency,” Pouyanné noted.
Production rose by 8.6 percent annually to 2.8 million barrels of oil equivalent per day (boed) in Q3, thanks to major start-ups including the Kaombo offshore oil field in Angola, and the liquefied natural gas (LNG) projects Ichthys in Australia and the second train of Yamal LNG in Russia.
The upstream business is well-positioned to profit from the rising oil prices, Total said, adding that it expects production growth of around 8 percent this year and 6-7 percent annually between 2017 and 2020. The production increase in the coming months will be mainly driven by the start-up of a third train at Yamal LNG in Russia, a second train at Ichthys LNG in Australia, Egina in Nigeria, and Tempa Rossa in Italy.
Total continues to keep discipline on investments, expecting net investments of around US$16 billion this year and US$15 billion-US$17 billion for each of 2019 and 2020.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.