French oil giant Total today reported its adjusted net income for the first quarter of 2013. The group’s adjusted net income was $3.8 billion, a 6 per cent drop when compared to $4.0 billion achieved in the same period a year before.
Commenting on the results, Christophe de Margerie, Chairman and CEO said :”The Group delivered solid results of 2.9 billion euros in adjusted net income for the first quarter, illustrating the Group’s many strengths.”
“In the UK North Sea, the Group internalized lessons learned to successfully restart the Elgin-Franklin fields in March. With the launch of the Moho Nord project, the most significant of its kind in the Republic of Congo, the Group will deploy innovative deep- offshore technologies, further demonstrating the Group’s ability to expand its horizons while respecting the social and environmental commitments inherent to its operations.”
” The Group’s commitment to strict investment discipline was evidenced, in particular, by the sale of its interest in the Voyageur upgrader in Canada following a comprehensive review of strategic options. Finally, in the downstream, the quality of the results generated in the first quarter highlights the progress made in implementing the optimization programs. With this ability to adapt to an evolving environment and opportunity set, Total continues to progress with confidence toward achieving its goals.”
Hydrocarbon production was 2,323 thousand barrels of oil equivalent per day (kboe/d) in the first quarter 2013, a decrease compared to the first quarter 2012, essentially as a result of start-ups and ramp-ups of new projects; normal decline and maintenance; portfolio changes, comprised essentially of the sale of assets in the UK, Nigeria and Columbia, net of the positive effect of an increased interest in Novatek; the incident at Elgin in the UK North Sea and security conditions in Nigeria.
Since the beginning of the year, the Group successfully restarted production at Elgin- Franklin in the UK North Sea following the approval of the safety case by UK authorities. Production has reached nearly 50% of the fields’ potential. The next scheduled start-ups include Angola LNG, Sulige in China, and Kashagan in Kazakhstan. Total continues to pursue the development of its major projects, most recently with the launch of Vloho Nord. The Group’s ambitious exploration program continues with high-potential wells targeting frontier prospects, including in Gabon, Kenya and Indonesia. 80% of Total’s exploration potential this year is yet to be drilled.