Total Swung to Fourth-Quarter Net Profit, Plans New Projects
February 09 2017 - 2:10AM
Dow Jones News
By Inti Landauro
PARIS--French oil major Total SA (TOT) notched up
better-than-expected fourth-quarter profit, reaping the benefit of
heavy recent cost cuts, higher oil output, and the rebound in crude
prices to above $50 a barrel.
The company said it is sufficiently confident about the outlook
for the oil market to plan as many as 10 new projects within the
next 18 months even though management intends to keep a lid on
overall capital expenditure amid likely volatile crude prices.
Total posted net profit of $548 million in the three months to
end-December, a swing from a net loss of $1.63 billion in the same
period a year earlier, on a 12% jump in revenue to $42.28
billion.
When adjusted to exclude the effect of changes in inventories
and other nonrecurring items, profit rose to 16% to $2.41 billion
from $2.08 billion, ahead of the average analysts' forecast of
$2.26 billion, the median estimate according to data provider
FactSet.
Total booked a $1.86 billion depreciation charge on gas assets
in the quarter. Net profit rose 22% in the year to Dec. 31 to $6.20
billion.
To offset the effects of falling oil and gas prices on its
balance sheet, Total has carried out a widespread program to cut
costs at all its units and scrambled to extract more oil from
existing fields, accelerated new field developments and cut capital
investment. The strategy helped the company book net profit of more
than $1 billion in 2014 and in 2015.
Total said it raised output by 4.5% to 2.45 million barrels of
oil equivalent a day in 2016 after a 14% increase in 2015.
The company said it declared a higher dividend of 2.45 euros
($2.62) a share.
-Write to Inti Landauro at inti.landauro@wsj.com
(END) Dow Jones Newswires
February 09, 2017 02:55 ET (07:55 GMT)
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