French oil giant Total SA said on Friday that 2012 started positively and reiterated its output guidance, reporting a 12.8% increase in net profit in the fourth quarter on the strength of high oil prices and despite the weak downstream markets. In the fourth quarter, Total adjusted net income, a closely metric that strips out items such as petroleum inventory securities and income from its stake in drugmaker Sanofi, amounted to € 2.73 billion, from € 2.56 billion a year earlier, analysts polled by Dow Jones Newswires expected to be € 2.72 billion.
Total net income for the fourth quarter amounted to € 2.29 billion, an increase of € 2.03 billion a year earlier.
The group confirmed that targets a 2.5% increase of production on average per year 2012-2015 to strong investment and promised to continue through this period.
The group hydrocarbon output was stable in the last quarter of 2011 from a year earlier, to 2.384 million barrels of oil equivalent per day (Mboe / d) of 2.387 Mboe / da year earlier and 2,319 Mboe / d in the third quarter.
Total has seen the 2011 Libyan oil production is limited by the failure, but Libyan output is coming back and other large projects such as the ramp-up of the Pazflor Angolan deep offshore fields, has also contributed to higher volumes.
Total, Europe’s third largest oil company, said that the year began favorably for the upstream activities as a result of sustained high oil prices, while it should be noted that refining margins improved “significantly” after a sharp decline in 2011. Profit for European and American oil companies have been hit hard by the weak refining in the most recent quarter.
The group is planning a net amount of € 20 billion investment in 2012, after he has invested € 22 billion in 2011, which was 40% higher than 2010 levels.
In the period 2012-2014, the group plans to invest an average net amount of € 23 billion per year, he said.
“In a period of economic slowdown, continued tensions in the global oil supply supported the Brent price above $ 110 per barrel in 2011. This environment is favorable to the upstream, but it was difficult for the downstream activities, particularly in Europe , “Total Chairman and Chief Executive Christophe de Margerie said.
In 2011 the Group sold $ 11 billion in assets, while the obtained $ 12 billion in assets. In 2012, between divestments and acquisitions, the group acquired $ 4 billion net asset value.
In the past six months, shares in Total shed about 18% on fears over output after the Arab spring events and the downstream environment has deteriorated further. Shares closed Thursday at € 41.15, up 0.28.
source:onlinewsj
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