Total SA, which is considered as the third-largest oil producer in Europe, announced that its profit in the fourth quarter decreased by 19% as refining margins in the region declined and the companys output dropped. The refiner also said it has raised its dividend.
Total SA made an official statement today, revealing that its profit excluding changes in inventories decreased from 3.04 in 2012 to 2.47 billion Euro (3.4 billion dollars) in 2013. In comparison, analysts average estimates amounted to 2.57 billion Euro, according to information compiled by Bloomberg. The quarterly dividend of the company was raised from 59 cents to 61 cents a share. Its stock increased as much as 1.9% and reached 44.43 Euro in Paris.
Currently, Total SA is Europes third-largest oil producer after Royal Dutch Shell Plc and BP Plc. The company reported lower earnings due to a series of factors such as price stagnation, decreasing refining profits and rising drilling costs. Total SA is also the largest refiner in Western Europe, where it operates eight plants.
The companys Chief Executive Officer Christophe de Margerie said in the companys statement, which was cited by Bloomberg: “The significant deterioration of European refining margins was partially offset by a more favorable environment for petrochemicals. The intensive investment phase that we embarked on to transform our production profile by 2017 reached a peak of $28 billion in 2013.”
Totals capital spending this year is expected to drop to 26 billion dollars when the companys oil and gas developments are completed. The refiner also shared its belief that a strong balance sheet allows it to boost returns to shareholders.
Total announced that it is planning to start new projects in order to boost its production to 2.6 million barrels a day in 2015 and about 3 million barrels daily in 2017. As reported by Bloomberg, the company has also given a promise to explore more aggressively for new oil and gas deposits, while cutting its refining and petrochemicals business in Europe by 20% from 2012 to 2017.
Total SAs shares rose by 0.73% to 43.9050 EUR by 13:48 GMT in Paris, and has a market capitalization of nearly 104 billion Euro.
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