French oil major Total said a strong balance sheet and cost reductions would enable it to launch new projects after its first quarter results revealed an income surge.
Total’s adjusted net income was £2billion for the first three months of the 2017, up 56% year-on-year, thanks to “good operational performance and a steadily decreasing breakeven”.
The Paris-headquartered firm’s sales jumped by a quarter to £31.9billion as hydrocarbon production grew by 4% to 2.6million barrels of oil equivalent per day.
Production start-up from the huge Moho Nord field in Congo was achieved in the first quarter.
Total also said a ramping up of production from its multibillion-pound Laggan-Tormore project west of Shetland had contributed to the overall increase.
First gas from Laggan-Tormore was achieved in 2016, with supplies being delivered to the onshore Shetland Gas Plant via a 90-mile pipeline.
Also in Scotland, the company recently confirmed it would move the 800 onshore workers it employs in Aberdeen into Subsea 7’s old west campus building in Westhill.
It is thought Total is looking to have its Granite City workforce in the new premises, following a refurbishment, by October.
Its current base is in Crawpeel Road in Altens, Aberdeen.
In yesterday’s results announcement, Total said it would still look to cut costs as part of its £2.7billion savings target for 2017 while looking to “take advantage of opportunities offered by the current oil cycle”.
Asset sales totalled £2billion for the first quarter, mostly made up from proceeds of the divestment of its Atotech chemicals business.
Total revealed it had decided to sanction the development of the Vaca Muerta shale resources in Argentina.
Total’s board approved a 2017 first interim dividend of 52p per share, an increase of 1.6% compared to last year.
Recommended for you
