Total 3Q Profits up 45%, Output 9% Higher

French energy giant Total October 26 reported profit of $4bn for the third quarter, up 45% on last year; adjusted net operating income was $4.55bn, up 49% on Q3 2017.

Oil and gas production rose 9% to 2.8mn barrels of oil equivalent/day. Of that change, 10% came from ramp-ups such as at Yamal LNG; another 3% from acquisitions such as Maersk Oil; while 4% were lost from field declines and production-sharing contract price effects.

Oil prices were up by 44% on the same period last year, averaging $75/b, it said. So its upstream division accounted for almost three-quarters of adjusted operating profit ($2.9bn) and was twice what it had been the same time last year. Debt-adjusted cashflow was up 37% at $7.5bn, and the company in September bought back $1bn of shares, of a planned total $1.5bn for the year.

The gas, renewables and power division made an adjusted profit of $272mn, almost three times the amount in Q3 2017 thanks to strong performance from LNG and from gas and power trading.  LNG sales though were down by 6%, at 2.78mn metric tons. The acquisition of Engie's LNG division and Direct Energie accounted for the $3bn of investments in the quarter. It is planning to keep investments next year similar to this year's expected $16bn.

Return on average capital employed came mostly from the refining and marketing sectors: the exploration and production sector yielded 8.3% and the gas & power division, 10.6%. And at $3.3bn, depletion, impairments and depreciation was a tenth more than in the same period last year.