LA DEFENSE (dpa-AFX) - French oil giant Total SA (TOT, TTFNF.PK, TTA.L) reported Friday a higher fourth-quarter profit, as ongoing tensions on global oil supply drove up oil prices benefiting the upstream business, while its refining business suffered challenging conditions, particularly in Europe. The company has budgeted $20 billion as net investment for 2012.
In the fourth quarter, net income group share increased 13 percent to 2.29 billion euros or 1.01 euros per share from 2.03 billion euros or 0.90 euros per share reported last year. In US dollar terms, net income grew 12 percent to $3.08 billion.
In dollar terms, adjusted net income improved 6 percent to $3.67 billion or $1.62 per share from $3.47 billion or $1.54 per share in the prior year.
Sales for the quarter climbed 18 percent to 47.49 billion euros from 40.16 billion euros in the same quarter last year. Expressed in dollars, sales climbed 17 percent to $64.03 billion.
In the quarter, upstream business posted a 21 percent growth in adjusted net operating income. But, operating profit declined 17 percent in downstream or refining business.
Combined hydrocarbon production was 2,384 thousand barrels of oil equivalent per day, or kboe\d, flat with last year. Liquids production fell 7 percent, while gas output rose 9 percent from last year.
The Brent price averaged $109.3 per barrel in the quarter, 26 percent higher than last year. Average liquids price grew 25 percent to $104.3 per barrel and average gas price climbed 21 percent to $6.79 per Mbtu. Average hydrocarbons price also climbed 23 percent from the prior year.
For the full year, net income group share was 12.28 billion euros, up 16 percent from last year. Adjusted net income improved 11 percent to 11.42 billion euros or 5.06 euros per share. Sales for the year grew 16 percent to 184.69 billion euros.
Christophe de Margerie, chairman and CEO of the company said, 'In a period of economic slowdown, ongoing tensions on the global oil supply supported the Brent price above 110 $/b in 2011. This environment has been favorable for the Upstream, but it was difficult for the Downstream activities, notably in Europe.'
Further, the board has decided to propose at the May 11, 2012 annual shareholders meeting a dividend of 2.28 euros per share for 2011, stable compared to the prior year.
The 2012 budget for organic investments is $24 billion, of which more than 80 percent will be dedicated to the Upstream.
The company also said that since the beginning of the first quarter, the environment was favorable in the Upstream business and refining margins improved, following a sharp fall at the end of 2011.
In Paris, Total shares are currently trading at 40.71 euros, down 1.07 percent, on a volume of 733 thousand shares.
TOT closed Thursday's regular trading at $54.53 on the NYSE.
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© 2012 AFX News
