TOTAL DOWN 13%
The French oil company reported adjusted net income of $3.08 billion, marking a 2.10% decline year-over-year (YoY). The company beat the consensus estimate of $2.67 billion for the quarter. It maintained a quarterly dividend per share of 0.61 euros.
Despite falling crude prices, Total managed to report a better result as its output for the quarter grew and cost cutting measures paid off. Crude oil prices have more than halved from their peaks last year. West Texas Intermediate (WTI) and Brent crude oil futures - the benchmarks for crude oil prices are currently trading at $47.86 per barrel and $53.07 per barrel respectively. During the quarter, oil traded around $60 per barrel.
Although production declined in the second quarter compared to the first quarter, due to the closing down of a liquefied natural gas plant in war-ravaged Yemen, the company still increased its output for the quarter by 12% YoY to 2.30 million barrels of oil equivalent a day. Production rose as Total has initiated its project in Angola, the North Sea and Russia. The concession in Abu Dhabi also helped the company increase production. Total also announced plans to raise the output target to 8% in 2015, and to start production in the Surmont Phase 2 Oil-Sands unit in Canada, at the Gladstone liquefied natural gas development in Australia, and in Laggan-Tormore.
In the face of declining oil prices, Total cut capital expenditure this quarter. The company has sold assets worth $3.50 billion in the first half of 2015 and plans to increase this number to $10 billion till 2017. It further announced plans to sell a 20% stake in the Laggan-Tormore project for $882 million to SSE Plc. The company also aims to cut cost by $1.20 billion. Total has lowered its capital expenditure target from last year's $26 billion to a range of $23-24 billion.
The company's downstream segment is flourishing as refinery margins have increased from $10.90 a metric ton, a year earlier to $54.10 this quarter. Total's net income from refinery and chemical units increased three-fold to $1.35 billion this quarter.
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LUKOIL - The plan is based on the conservative $50 per barrel oil price scenario. Sustainable hydrocarbon production growth is planned in the Upstream business segment along with the growth in the share of high-margin projects in the overall production. In the Downstream business segment, the focus is on the improvement of operating efficiency and selective investment projects targeted at the enhancement of product slate.
BP - BP will acquire on completion a 43% equity share in Lightsource for a total consideration of $200 million, paid over three years. The great majority of this investment will fund Lightsource’s worldwide growth pipeline. The company will be renamed Lightsource BP and BP will have two seats on the board of directors.
REUTERS - Brent crude was up 69 cents, or 1.1 percent, at $64.03 a barrel by 0743 GMT. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015. U.S. West Texas Intermediate crude was up 45 cents, or 0.8 percent, at $57.59 a barrel.
ROSATOM - On December 10, 2017, the construction start ceremony took place at the Akkuyu NPP site under a limited construction licence issued by the Turkish Atomic Energy Agency (TAEK). Director General of the ROSATOM Alexey Likhachev, and First Deputy Minister of Energy and Mineral Resources of the Turkish Republic, Fatih Donmez, took part in the ceremony.