Total sees net income rise 72%

Published 30.07.2010 10:15:22 by John Bradbury

French oil giant saw adjusted net income surge 72% in the second quarter to hit €3 Bn or 60% in dollar terms to US $3.8 Bn.

Adjusted net income for the first half of the year also rose steeply for Total with the figure climbing 37% to €5.3 Bn or 36% to $7 Bn.

Earnings per share for the second quarter were up 71% Euro terms to €1.32 and up 60% in dollar terms to $1.68.

Total's chief executive Christophe de Margerie highlighted the Macondo oil spill incident as a key factor for the industry in the second quarter. “We are reminded once again that safety and the environment must remain our top priorities in this business,” he said.

He went on: “Total reacted immediately by launching complete review of all its existing procedures and drilling operations including the procedures to be implemented in the event of an accident. More generally, the group is pursuing a particularly strict policy to put in place the necessary means to define and apply rigorous processes, by emphasising the proper training and management of our teams.”

Commenting on the results, de Margerie said the economic environment in the second quarter was “globally favourable” with Brent crude trading at US $75/bbl while refining margins were at slighly higher levels.

Net income was up 19% on the first quarter this year, “..which is at the level of the best among the majors,” Total noted.

Earlier this month Total gained approval for its UK North Sea Islay development from the UK's Department of Energy and Climate Change.

Islay, in block 3/15 and which stretches across the median line to Norwegian blocks 29/6a and 29/6c is estimated to contain up to 17 million boe and is to be tapped with a single well tied back to the Alwyn platform with first gas slated for the second half next year, with a peak rate of 2.5 Mcm (88 Mmcf/d) of gas.

Islay, which lies just 3 km east of the Jura subsea development, was discovered back in June 2008 and tested at 1.22 Mcm – 43 Mmcf/d of gas.

And back in May Total commenced site construction work at Sullom Voe for the new £500 m gas processing plant which is being built there to become the receiving point for the deepwater Laggan and Tormore subsea gas field development in the West of Shetlands region.

Preliminary site construction work commenced marking the start of four years of construction at Sullom Voe and offshore drilling and installation operations which will see first gas flowing from the fields by mid-2014.

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