Total net profit jumps 72 percent, beats forecasts

30th July 2010, Comments 0 comments

French oil giant Total said Friday its second quarter net profit jumped 72 percent to 2.96 billion euros (3.86 billion dollars), beating forecasts on the back of higher oil prices.

Sales were 41.3 billion dollars, a rise of 31 percent, the company said.

The figures were higher than expected by financial analysts polled by Dow Jones newswires who predicted a net profit of 2.67 billion euros, an increase of 55 percent.

Total benefitted from a 32 percent year-on-year increase in the price of Brent crude to 78.20 dollars and an eight percent increase in production to 2.359 million barrels a day in the second quarter.

For the six months to June, Total said its net profit jumped 37 percent to 5.26 billion euros on sales up 28 percent to 78.9 billion euros.

In 2009, the company had seen earnings plunge 44 percent as the global economic slump sapped demand across the board but this year a recovery in the first quarter has continued through.

Higher production came on the back of investment in major projects last year, chief executive Christophe de Margerie said in a statement, adding that the results also benefited from a firmer dollar.

"Total faces the second half confident in its outlook and strategy for growth," de Margerie said, without giving any forecasts.

All sectors did well in the second quarter, with the exception of gas, he said.

Total shares rose 1.53 percent on the Paris bourse which was down 0.62 percent around midday, with dealers saying the results were very solid, especially in the refinery operations.

© 2010 AFP

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