French oil major Total booked an increase in quarterly profit despite a lower price environment as its production grew during the period fueled by new project startups and rampups.
Total’s adjusted net income in 4Q 2019 was $3.2 billion, stable compared to last year thanks to the stable adjusted net operating income of the segments. Adjusted net income excludes the after-tax inventory effect, special items and the impact of effects of changes in fair value.
Total recorded a net income of $2.6 billion in the fourth quarter 2019 compared to $1.13 billion in the same period of 2018.
Total posted a net income of $11.3 billion in 2019, a 2% decrease compared to 2018.
Total Chairman and CEO, Patrick Pouyanné, said: “The group reported solid fourth quarter 2019 results with cash flow (DACF) of $7.4 billion, an increase of more than 20% compared to the fourth quarter 2018, and adjusted net income stable at $3.2 billion, despite a lower price environment.
Hydrocarbon production was 3,113 thousand barrels of oil equivalent (kboe/d) in the fourth quarter 2019, an increase of 8% compared to last year, due to a 13% increase related to the start-up and ramp-up of new projects, including Yamal LNG in Russia, Egina in Nigeria, Ichthys in Australia, Kaombo in Angola, Culzean in the United Kingdom and Johan Sverdrup in Norway.
This was offset by 3% due to the natural decline of the fields and by 2% due to maintenance and Tyra redevelopment project in Denmark.
The company’s total hydrocarbon production in 2019 was 3,014 kboe/d, an increase of 9% compared to 2018.
According to Total, the environment remains volatile, given the uncertainty about hydrocarbon demand related to the outlook for global economic growth and a context of geopolitical instability.
The group has strong capacity to generate cash flow and, in a $60/b environment, expects to increase it by approximately $1 billion per year starting from 2019.
Spending discipline is maintained and the group continues its cost reduction program with an objective of more than $5 billion in cumulative savings in 2020. Net investments in 2020 should be on the order of $18 billion, and the group will complete its $5 billion asset sale program over the years 2019-2020, with $3 billion already announced.
Offshore Energy Today Staff
Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.
Also, if you’re interested in showcasing your company, product, or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.