French oil major Total posted a hefty increase in its adjusted net income for the first quarter of 2017, when compared to the first quarter of 2016.
Presenting its results on Thursday, Total said its 1Q adjusted net income was $2.6 billion, a 56 percent increase compared to $1.6 billion a year ago.
Hydrocarbon production was 2,569 thousand barrels of oil equivalent per day (kboe/d) in the first quarter 2017, an increase of 4% compared to the first quarter 2016, due to project ramp ups, notably Kashagan, Laggan-Tormore, Surmont, Incahuasi and Angola LNG; and improved security in Libya and Nigeria.
As for the Exploration & Production business segment, Total said that adjusted net operating income was around $1.4 billion in the first quarter 2017, nearly four times higher than in the first quarter 2016, due to production growth, cost reductions and a 44% increase in the average realized hydrocarbon price.
Providing its outlook for the year, in the upstream segment, Total maintained its production growth objective of more than 4% in 2017. Production is expected to benefit in the second quarter from the ramp up of projects recently started up, including the Moho Nord deep offshore project, located 75 kilometers offshore Pointe-Noire in Congo. Production there started in March.
Total, however, warned that production will be affected by seasonal maintenance as well as the full implementation of OPEC quotas. From July, production will benefit from the entry into the Al Shaheen concession in Qatar, which Total is taking over from Maersk Oil.
Total expects cash flow will benefit from production growth and cost reductions, while organic investments, excluding resource acquisitions, are expected to be 14-15 B$ in 2017 as previously indicated.
Offshore Energy Today Staff