French oil major Total today reported its adjusted net income for the first quarter of 2015 $2.6 billion versus $3.3 billion in the first quarter 2014, a decrease of 22%. According to Reuters, the results beat analysts’ forecasts of $2.05 billion in adjusted net profit.
The company’s CEO Patrick Pouyanné has said that Total is benefiting from its organic growth strategy.
Total recorded a 10 percent growth in oil and gas production compared to the same quarter a year ago. Production, which was 2,395 thousand barrels of oil equivalent per day, was boosted by start ups in Angola, Norway, Nigeria, UK and the new ADCO concession.
Adjusted net income excludes the after-tax inventory effect, the impact of changes in fair value and special items. Special items had a negative impact of $95 million in the first quarter 2015.
This includes the impairment of assets in Libya and Yemen due to the deteriorated security situation this quarter, partially offset by the gain on the sale of Bostik and the interests in several onshore fields in Nigeria, as well as the effect of fiscal changes in the United Kingdom.
Patrick Pouyanné said: “In the Upstream, production growth along with the first positive results of the cost reduction program partially offset lower oil prices. Downstream again generated excellent results due to its ongoing restructuring efforts and improved market conditions in refining and marketing.
“All of our teams are mobilized to reduce costs, lower breakevens and deliver new projects. With our strong balance sheet, we are confident in our ability to adapt and respond to this period of lower prices and achieve our growth targets for the benefit of our shareholders.”
Offshore Energy Today Staff