Total SA, which is the biggest oil manufacturer in France, released a statement today, revealing that its profit for the first quarter of the current financial year decreased by 10%, due to a collapse of refining margins and lower production.
Mr. Christophe de Margerie, who occupies the position of a Chairman and Chief Executive Officer of Total SA said in the statement, which was cited by the Wall Street Journal: “In all segments, our teams are working to translate our announced cost reduction commitment into tangible targets and are ready to participate in making the company more efficient.”
According to Total SAs statement, its profit excluding inventories changes decreased from 3.7 to 3.33 billion dollars, outstripping analysts expectations of a 3.39-billion-dollar profit. Total SA also reported that its production fell by 6% and reached 2.179 million barrels of oil equivalent on a daily basis from 2.323 million a year earlier. .
The companys Chief Executive Officer Mr. Christophe de Margerie shared that after the second quarter has began, the margins have recovered. However, the company warned that “major turnarounds” at its plants in Leuna and Vlissingen factories are expected to influence the refining over the second-quarter.
Total also reported that its adjusted net operating income for refining and chemicals fell by 21% and reached 346 million dollars over the first quarter. According to the statement, the dividend that is to be paid to its shareholders in September will amount to 61 euro cents per share.
The company will bet on its new projects that are considered beneficial and are expected to help it generate bigger oil production. The oil production is projected to be increased to 2.6 million barrels daily in 2015. The company has also set a target of about 3 million barrels a day two years later.
Total SA fell 0.06% to trade at 51.46 euros per share by 12:50 GMT, marking a one year change of +34.47%. According to the information published on the Financial Times, the 31 analysts offering 12-month price targets for Total SA have a median target of 50.00, with a high estimate of 58.40 and a low estimate of 42.00. The median estimate represents a -2.89% decrease from the last price of 51.49.
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