Crude Rebound Helps Total Limit Loss

PARIS, (APP - UrduPoint / Pakistan Point News - 28th july,2016) - French oil major Total said Thursday a recovery in crude prices, cost cutting, and increased output helped it limit a fall in its profits for the second quarter. Net earnings fell by 30 percent to $2.1 billion (1.9 billion euros) in April through June compared to the same period last year.

Sales slumped by 17 percent to $37.2 billion. Adjusted net income, a measure followed by markets that excludes changes to value of stocks, also fell by 30 percent, to $2.2 billion. That beat the $1.9 billion of adjusted net income on $30 billion in sales expected by analysts surveyed by FactSet. The company's shares rose by 1.1 percent to 43.15 Euros in early trading while the Paris CAC 40 index was up 0.

6 percent overall. Total pointed out that crude prices recovering from 13-year lows under $30 per barrel that they struck at the beginning of the year to an average of $46 per barrel in the second quarter had helped improve results. "Total captured the benefit of this rebound," said chief executive Patrick Pouyanne, saying that adjusted net income had climbed by a third from the the first quarter. But the still relatively low crude price hurt the exploration and production unit, which saw its adjusted net income drop 28 percent to $1.1 in the second quarter. That was partially compensated for by a 5 percent increase in output to 2.42 million barrels per day of oil equivalent thanks to new projects coming on line or ramping up production.