French major Total reported February 9, 2017, an adjusted net income of $2.4 bln for Q4 2016, up 16% on the year-ago period. Consolidated net income was $487 mln, up from a loss of $1.8 bln in Q4 2015.
Liquids production was unchanged on the year at 1.257 mln barrels/day with security problems in Nigeria and Yemen offsetting gains elsewhere such as Kashagan; but gas output was up 10%, at 6.6 mln ft³/d, with boosts coming from Laggan-Tormore in the UK, which started up February 2016, and Angola LNG's ramp-up since mid-2016 among other contributory factors.
LNG sales of 2.75 mln metric tons were up 11% on the year. Yemen LNG has not exported since April 2015.
Total is targeting $3.5 bln of cost savings this year, given the volatility of prices.
It sees high stock levels and aims to bring production costs down to $5.5/barrel of oil equivalent from $5.9/boe, with capital expenditure set at $16-17 bln including acquisitions, down from $18.3 bln last year.
Operating costs were down $2.8 bln, ahead of the targeted $2.4 bln.
Production is set to grow at an average of 5%/yr until 2020.
Taking advantage of low prices the company plans to launch 10 projects over the next 18 months and add resources to its portfolio.
Total's breakeven will fall below $40/b this year, it said.
Reporting a return on equity of 8.7%, it said it was the most profitable of the majors. It has sold $8 bln of its $10 bln target.
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