Total's 4Q Net Profit Soars on Higher Prices, Production -- Update
(Adds dividend, share buyback proposals.)
By Marc Bisbal Arias
Total SA (FP.FR) said Thursday that its fourth-quarter net profit soared 86% on year as production increased and it benefited from higher oil prices.
Net profit was $1.02 billion, compared with $548 million in the year-earlier period. In adjusted terms, net profit rose 19% to $2.87 billion, against estimates of about $2.89 billion from a poll conducted by FactSet. Sales rose to $47.35 billion from $42.28 billion.
The French oil-and-gas company said that adjusted net operating profit rose 79% to $1.8 billion at its exploration and production business. In refining and chemicals, adjusted net operating profit fell 22% to $886 million.
Financial discipline was maintained in 2017, Total said, with organic investments reaching $14.4 billion--within the estimated range of $13 billion to $15 billion--and cost savings of $3.7 billion, $200 million more than it had targeted.
Total said that production costs also fell to $5.4 for a barrel of oil equivalent, compared with $9.9 for a barrel of oil equivalent in 2014.
The company proposed an annual dividend of 2.48 euros ($3.06) a share for 2017, 1.2% higher than in 2016.
As a result of strong cash-flow growth, the company said that it will propose dividend increases and share buybacks for the next three years.
Write to Marc Bisbal Arias at firstname.lastname@example.org
(END) Dow Jones Newswires
February 08, 2018 03:10 ET (08:10 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.