Total's Profit Surges Back To Pre-Pandemic Levels

Energy sector giant Total said on Thursday that its profit jumped in the first quarter close to levels from before the coronavirus pandemic on the back of rising oil and gas prices.

Big Oil has enjoyed more favourable conditions this year thanks to rising crude prices and recovering fuel demand, but Total is in a better position than many of its peers. The company, which is branching into renewable energy and diversifying away from hydrocarbon-centred activities, benefited from this drive as areas like oil refining suffered.

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The French energy major reported that its first-quarter net income (Group share) was $3.34 billion, significantly higher than last year's $34 million. Earnings per share were $1.23, compared to last year's loss of $0.01. Adjusted net income (Group share) was $3 billion, up 69 percent compared to $1.78 billion in 2020. Adjusted earnings per share were $1.10, versus $0.66 in the first quarter of 2020.

This was despite a drop in hydrocarbon production of 7 percent from 3.09 million barrels of oil equivalent a day a year earlier, to 2.863 million barrels of oil equivalent per day (boepd).

While BP Plc and Royal Dutch Shell Plc are under pressure to return more money to investors after slashing their dividends in 2020, Total maintained its payout throughout the crisis and will funnel its cash into new projects and the transition to cleaner energy. The French company’s renewable power output more than doubled in the first quarter and it gave the green light to multibillion-dollar oil development in Uganda.

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The company affirmed that it expects production to be stable in the full year, benefiting from the resumption in Libya.

Sales in the first quarter amounted to $43.74 billion, compared with $43.87 billion a year earlier, it said. The group's debt-to-equity ratio reached 19.5% as of March 31.

Total targets $500 million in operating costs savings in the full year and production costs close to $5 per barrel of oil equivalent. Net investments are expected to be between $12 billion and $13 billion, half of which will be allocated toward renewables and electricity.