Rises in Production and Oil Price Push Total Profits Higher
French oil company Total said Friday its net profit jumped nearly 40 percent in the third quarter to $2.7 billion (2.3 billion euros) thanks to rising global oil prices and increased production.
Its adjusted net profit, a measure that excludes volatile and exceptional items, for its part climbed by 29 percent to $2.67 billion, slightly beating analyst forecasts.
Chief executive Patrick Pouyanne praised the firm's solid performance, noting the 29 percent increase in adjusted net profit was more than double the 14 percent rise in the price of Brent crude, the main international oil contract.
"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," he said.
Like other oil majors, Total has spent the past few years trying to squeeze costs as global oil prices plunged from over $100 per barrel in 2014 to under $30 in 2016.
It said cost reduction will come in at more than $3.6 billion this year, above target.
"This allows the implementation of the strategy for profitable growth, taking advantage of the low cost environment, notably by launching high-return projects," added Pouyanne.
Total also boosted its production by 6 percent in the third quarter to 2.58 million barrels of oil equivalent per day thanks to the starting up of new projects.
The firm expects a five percent gain in output for the year overall.
Source: Agence France Presse
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