Total SA recorded a first-quarter adjusted net income of $2.5 billion, up from $2.2 billion in first-quarter 2016.
The French supermajor’s first-half adjusted net income was $5.03 billion, up from $3.81 billion in first-half 2016.
Given Total’s stronger balance sheet, Patrick Pouyanne, chairman and chief executive officer, said the firm “has the flexibility to take advantage of the low-cost environment by being able to launch profitable projects and acquire resources under attractive conditions.”
Second-quarter adjusted net operating income from the upstream business was $1.36 billion, up from $1.04 billion in second-quarter 2016, notably due to production growth, cost reduction, and the increase in oil and gas prices, the firm said.
Total expects annual production growth to be more than 4% in 2017, supported by the start-up in mid-July of operations at Al-Shaheen field in Qatar and the continued ramp-up of new projects, notably Kashagan in Kazahkstan and Moho Nord in Congo (OGJ Online, July 11, 2017). Start-ups of new projects will continue in the second half, mainly with Libra Pioneiro in Brazil and Edradour-Glenlivet in the UK.
Second-quarter adjusted net operating income for the downstream business was $861 million, down from $1.02 billion in second-quarter 2016, notably due to significant maintenance activities at major platforms, it said.
Total believes refining margins, supported by cracks for fuel oil and gasoline, and petrochemical margins remain favorable at the start of the third quarter. Availability of the integrated Antwerp platform will be affected by the finalization of the upgrade program, which should be completed by the end of the third quarter (OGJ Online, July 7, 2017). In addition, maintenance activities are planned at Port Arthur in the US.