UPDATE: Total 1Q Net Profit -36% As Oil Price, Output Fall
May 06 2009 - 2:49AM
Dow Jones News
French oil giant Total SA (TOT) Wednesday reported a 36% fall in
first-quarter net profit due to sharply lower oil prices and as the
compay's hydrocarbons output fell.
But France's biggest company by market value looked ahead to new
production due on stream later in the year and repeated its
intention to keep investing despite a "weak environment." Adjusted
net profit also beat analysts' expectations.
Total said net profit fell to EUR2.29 billion, for the three
months ended March. 31 from EUR3.6 billion a year earlier.
The average price of Brent crude in the first quarter was $44.50
a barrel, Total said, a decline of 54% from a year earlier and 20%
below the average price in the previous quarter.
Hydrocarbon production fell to an average of 2.32 million
barrels of oil equivalent in the first quarter, down 4.3%.
The biggest factor hindering production was the Organization of
Petroleum Exporting Countries' production cuts, Total said.
However, the company highlighted new output expected in the
comimg months.
"The giant Akpo field in deep-offshore Nigeria started up at the
end of the quarter and will contribute significantly to production
for the rest of the year," Chief Executive Christophe de Margerie
said.
Four other major projects should start up by the end of the
year, de Margerie said, listing Tahiti in the Gulf of Mexico,
Tombua Landana in Angola, and two liquefied natural gas projects:
Yemen LNG and Qatargas II train B.
Total said first-quarter profit, adjusted to exclude inventory
changes, non-recurring items, and the group's equity share of the
amortization of intangibles related to the Sanofi-Aventis (SNY)
merger, fell 35% to EUR2.11 billion, from EUR3.25 billion a year
earlier.
Adjusted net profit is the income figure most closely watched by
analysts. Total's first-quarter adjusted net profit beats an
average estimate of EUR2 billion, according to a Dow Jones
Newswires survey of 13 analysts.
Sales fell 32% to EUR30.04 billion from EUR44.21 billion.
Total's fall in profit comes after peers Royal Dutch Shell PLC
(RDSB.LN) and BP PLC (BP) recently reported respective declines of
62% and 58.6% in first-quarter net profit as lower oil prices hurt
results from their exploration-and-production operations.
As of 0706 GMT, shortly after Paris trading started, shares of
Total traded down 1.1%, or EUR0.43 lower, at EUR38.72 each. The
overall CAC 40 traded up 0.2%.
Company Web site: http://www.total.com
-By Adam Mitchell, Dow Jones Newswires, +33 1 40171756; adam.mitchell@dowjones.com