Total benefits from increased production and higher oil prices
By Polya Lesova, MarketWatch
LONDON (MarketWatch) — Total SA, France’s biggest oil company, said Friday its adjusted fourth-quarter profit rose 23%, as the firm benefited from higher crude prices and increased production.
Net profit in the three months ended Dec. 31 slipped 2% to 2.03 billion euros ($2.75 billion) from the same period a year ago.
Adjusted net profit — which is closely watched by analysts since it excludes changes to the value of inventories and to the group’s stake in Sanofi-Aventis SA — surged to €2.56 billion from €2.08 billion. The figure matched the forecast of analysts polled by Dow Jones Newswires.
Shares of Total (TOT 58.32, -0.82, -1.39%) (FR:FP 43.10, -0.39, -0.90%) fell 0.7% in Paris trading, as France’s benchmark CAC 40 index (FR:PX1 4,056, -38.87, -0.95%) dropped 0.9%.
The French energy giant has benefited from rising oil prices. In the fourth quarter, the price of Brent crude averaged $86.5 a barrel, up 16% from the same period a year ago and up 12% from the third quarter of 2010.
Also, Total increased hydrocarbon production by 0.4% in the fourth quarter to 2.387 million barrels of oil equivalent per day.
“The increase in the 2010 results reflects the improvement in the group’s performance, with notably production growth of more than 4% compared to 2009 and a strong rebound in chemicals,” said Chief Executive Christophe de Margerie in a statement.
Total will pay a dividend for 2010 of €2.28 a share, unchanged from the previous year. Its investment budget for 2011 will be $20 billion.
