ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • India
    • Economy
    • Politics
    • Markets
  • World
    • Economy
    • Politics
    • Markets
  • Companies
    • Auto
    • Banking & Financial Services
    • Pharma
    • Energy
    • Infrastructure
    • Media
    • IT
    • Telecom
    • Consumer Products
    • Aviation
    • FMCG
  • Personal Finance
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
  • Mutual Funds
  • Technology
  • Automobile
    • Cars
    • Bikes
  • Small Business
    • SME
    • Startups
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
    • AUTHORS
Home » World News

Total profit jumps on strong output and cost savings

  • Twitter
  • Facebook
  • GPlus
Updated: Fri, Oct 27, 2017
02:22 pm
Reuters
RELATED NEWS
Philippine central bank governor Espenilla dies Philippine central bank governor Espenilla dies
Oppo plans USD 1.5 bn investment in R&D with focus on 5G; to ramp up India hiring Oppo plans USD 1.5 bn investment in R&D with focus on 5G; to ramp up India hiring
Buffett appears to fault Trump, laments M&A dearth in Berkshire shareholder letter Buffett appears to fault Trump, laments M&A dearth in Berkshire shareholder letter
As trade deadline looms, U.S. and China sprint to seal a deal As trade deadline looms, U.S. and China sprint to seal a deal
Oppo unveils 5G smartphone, ready for trials in India from Q2 this year Oppo unveils 5G smartphone, ready for trials in India from Q2 this year

French oil and gas major Total reported a 29 percent jump in third-quarter net profit as project ramp-ups and new investments lifted production, joining a list of energy companies benefiting from higher crude prices.

Total`s oil production rose 6 percent while adjusted net operating income from its upstream exploration and production branch soared 84 percent from a year ago. High demand for petroleum products led to a sharp increase in refining margin.

"The group took full advantage of the favourable environment thanks to the performance of its integrated model and its strategy to reduce its breakeven point," Chief Executive Patrick Pouyanne said in a statement.

Total, which has emerged from the prolonged oil downturn with a stronger balance sheet compared with peers, said its return on equity was close to 10 percent.

Jefferies analysts, who have a "hold" rating on Total, said the results were solid. The stock rose 1 percent in early trade, hitting its highest in nearly five months.

Also on Friday Eni said it swung to a profit in the quarter, while Statoil on Thursday posted a sharp rise in operating profit.

Total`s net adjusted profit for the quarter hit $2.7 billion, in line with the average of forecasts from analysts polled by Reuters.

Production increases in projects such as Kashagan in Kazakhstan, Moho Nord in Republic of Congo and Angola LNG, as well as new concessions such as Al-Shaheen in Qatar, contributed to the 2.58 million barrels of oil equivalent output per day.GROWTH TARGET

Total maintained its annual production growth target of around 5 percent in 2017, expected to remain steady at that level until 2022.

In the downstream segment, Total said its European refining margin indicator rose sharply to $48.2 per tonne compared with $41.4 a year before, due to strong demand for products after Hurricane Harvey led to numerous shutdowns of refining capacity.

"The downstream benefited from favourable refining margins and increased its results by 18 percent compared to the second quarter, despite the impact of Hurricane Harvey on American operations," Pouyanne said.

Total said cost reductions for 2017 will be more than $3.6 billion, above a $3.5 billion target, as it continued to drive down costs by measures such as reducing the number of expensive contractors in places like Nigeria and Angola.

The company said its cost of production dropped below $5 per barrel during the past three months, ahead of the target of $5.5 per barrel for the year.

It has said it would take advantage of the low cost environment to launch high-return projects.

It reiterated a target of $5 billion in savings by 2020 while pursuing efforts to reduce its breakeven point.

Total`s pre-dividend organic breakeven point, excluding acquisitions and divestments, is expected below $30 per barrel this year and should continue to fall to $20 in 2019.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

TAGS:
Economy
RELATED NEWS
Philippine central bank governor Espenilla dies Philippine central bank governor Espenilla dies
Oppo plans USD 1.5 bn investment in R&D with focus on 5G; to ramp up India hiring Oppo plans USD 1.5 bn investment in R&D with focus on 5G; to ramp up India hiring
Buffett appears to fault Trump, laments M&A dearth in Berkshire shareholder letter Buffett appears to fault Trump, laments M&A dearth in Berkshire shareholder letter
As trade deadline looms, U.S. and China sprint to seal a deal As trade deadline looms, U.S. and China sprint to seal a deal
Oppo unveils 5G smartphone, ready for trials in India from Q2 this year Oppo unveils 5G smartphone, ready for trials in India from Q2 this year

LATEST NEWS

Twitter co-founder Evan Williams steps down from board

7th Pay Commission: Government forms committee to look into pay hike demand of these 2.5 lakh employees

HDFC National Pension System calculator: How much you can get with Rs 2000, Rs 5000, Rs 10,000, Rs 12,500 per month investment

How to get a PAN card in India

Income Tax Payment 2019: Got an expensive gift? Here's why you should keep a documentary proof

As trade deadline looms, U.S. and China sprint to seal a deal

Comprehensive policy on e-commerce a 'welcome move', say e-tail giants

Public Provident Fund Investment: How to turn Rs 416/day into Rs 43 lakh, save income tax

PM-KISAN scheme to be rolled out Sunday; over 1 cr farmers to get Rs 2,000 each in 1st tranche

Vistara-Japan Airlines enter into codeshare partnership

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • Amazon Prime Day
  • Income Tax
  • Bharti Airtel
  • NPA
  • Home Loan

Trending Topics

  • Farm Loans
  • 7th Pay Commission
  • Sanitary Pads
  • National Stock Exchange
  • GST

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved