Total Returned to Profit in 3Q, Maintains Dividend -- Update
--Total returned to a profit in the third quarter after a
second-quarter loss, although earnings remained far lower than in
--Results benefited from oil prices above $40 a barrel, but
refining margins suffered
--The company's third interim dividend payment was maintained at
EUR0.66 a share
By Giulia Petroni
Total SE returned to profit in the third quarter of the year as
results benefited from a more favorable environment with oil prices
above $40 a barrel.
The French oil-and-gas major on Friday reported a quarterly net
profit of $202 million, down from $2.80 billion in the same period
last year. The result marked an improvement compared to the
previous quarter, when the company posted a net loss of $8.37
billion due to exceptional asset impairments.
On an adjusted basis, profit was $848 million, well above a
FactSet-compiled consensus that had forecast the figure at $472.6
Quarterly results were positively affected by improved oil
prices as well as strong demand for petroleum products for road
transportation, Total said. However, natural gas prices were low
and refining margins severely depressed due to excess production
Total's hydrocarbon production decreased 11% on year to 2.72
million barrels of oil-equivalent a day partly due to compliance
with the Organization of the Petroleum Exporting Countries' quotas
and portfolio effects. The company said it expects full-year
production below 2.9 million barrels a day.
Sales in the third quarter fell to $33.14 billion, compared with
$48.59 billion for the year-earlier period.
Total said the oil price increase is expected to positively
affect its average liquefied natural gas selling price in the
fourth quarter, while European refining margins remain fragile
mainly due to low demand of jet fuel.
The company said it will exceed its cost reduction goals with
savings of more than $1 billion in 2020, but cut its net
investments to less than $13 billion for the full year.
Total maintained its third interim dividend payment at 0.66
euros ($0.77) a share and reaffirmed its sustainability in a $40
per barrel of Brent environment.
At 0840 GMT, shares were up 2.1% at EUR25.66.
Write to Giulia Petroni at email@example.com
(END) Dow Jones Newswires
October 30, 2020 05:00 ET (09:00 GMT)
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