Paris, October 26 - Neftegaz.RU. French oil major Total posted a 45 % increase in the 3rd quarter 2018 profit, boosted by higher production and oil prices.
The company’s net profit was around $3.9 billion, up from $2.7 billion in the 3rd quarter of 2017. Commenting on the results, CEO Patrick Pouyanné said: «Total’s 3rd quarter adjusted net income increased by 48% from last year to $4.0 billion, while oil prices increased by 44% to 75 $/b supported by supply tensions and the geopolitical context.»
Exploration & Production doubled its adjusted net operating profit to $2.9 billion in the 3rd quarter. Production rose to 2.8 Mboe/d, an increase of 8.6% compared to a year ago.
Production grew from last year’s 2,5 million barrels of oil equivalent per day to 3Q 2018 2,8 Mboe/d, boosted by start-ups and ramp-ups from offshore projects in Australia, Angola, Kazakhstan, Russia, and the North Sea.
«Notably during the quarter, major project start-ups included Kaombo in Angola, Ichthys LNG in Australia and the 2nd train of Yamal LNG in Russia. Production growth for 2018 will be close to 8%. Also, exploration had significant success with the wells of Glendronach in the UK, Shwee Yee Htun 2 in Myanmar and Sururu in Brazil,» Pouyanné said.
Looking ahead, Total said while Brent continued trading at around $80 a barrel due to geopolitical context and supply tensions, the company would still work to improve operational efficiency and reduce breakeven to place itself in a position to make profit in any environment.
Total said its Upstream division was well position to profit from the rise in oil prices thanks to expected output growth of 8% for 2018, and 6-7% per year by 2020. Production will be boosted in the coming months by the start-ups of the 3rd train at Yamal LNG in Russia, Egina FPSO in Nigeria, Tempa Rossa in Italy, and the 2nd Ichthys LNG train in Australia.