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Double-digit growth in earnings at Total

French oil major Total reports double-digit growth in earnings in the first quarter, where the company also completed its takeover of Maersk Oil.

Photo: Bloomberg

Total has delivered a report which shows growth of 13 percent in adjusted net earnings.

The French oil giant's net earnings increased to USD 2.9 billion from USD 2.6 billion in the same period last year, according to the report.

"Oil prices continued to rebound in the first quarter 2018. Brent rose to an average USD 67 per barrel, supported by strong demand, OPEC-non-OPEC compliance and geopolitical tensions. Conversely, as a result of this increase, refining margins were weaker (-34 percent)," said CEO Patrick Pouyanné in the report.

Growth in the first quarter was partly driven by the fact that production reached a record high level of more than 2.7 million barrels of oil equivalents per day. This was five percent more than last year.

According to Total, production growth was driven by several new projects  and acquisitions such as Maersk Oil and Al Shaheen in Qatar and Yamal LNG in Russia. Total also established two new startups in the first quarter with Fort Hills in Canada and Timimoun in Algeria. With the acquisition of Maersk Oil, Total became the second-largest player in oil extraction in the North Sea.

"The group continues to prepare for the future. Major successes were achieved by successfully obtaining two new 40-year concessions in offshore Abu Dhabi, acquiring a 16 percent interest in the Waha onshore concession in Libya and growing its position in the deep offshore Gulf of Mexico following the giant discovery of Ballymore in January," writes Total in the report. 

English Edit: Lena Rutkowski

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