Costs chop Total profit

by on July 27, 2012 6:53 am BST

The Elgin gas leak in the UK North Sea and other incidents in Nigeria and Yemen ate into the upstream performance as production went down 2%.

The average price of crude also slipped 7% year-on-year, Total said in Friday’s result announcement.

Net profit for the three months to the end of June was EUR 1.61 billion ($1.98 billion) as against EUR 2.81 billion a year earlier.

On an adjusted basis, however, the net rose from EUR 2.79 billion to EUR 2.86 billion.

This was despite sales rising from EUR 45 billion to EUR 49.14 billion and revenue from sales increasing from EUR 40.47 billion to EUR 44.58 billion.

Purchases were, however, up at EUR 32.29 billion from EUR 28.39 billion while the depreciation bill hiked from EUR 1.53 billion to EUR 2.03 billion.

Total average production for the quarter was 2.26 million barrels of oile equivalent per day as compared with 2.31 MMboepd.

The damage was done in gas where average production sank 6% from 6.08 billion cubic feet per day to 5.72 billion cbf.

Overall there was a loss of 3.5% in production from the Elgin gas leak and shut-in in the North Sea and other incidents in Nigeria.

There was also a 2% drop due to security issues in Yemen and a shut-down in Syria, net of the positive effect of a return to production in Libya following the Arab Spring.

Higher refining margins in Europe, however, brought good news for the refining and chemical business unit.

More to follow…