Total may have taken an 18% hit in its net income compared to 2014, but the French company said it was “the best performance among the majors.”
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Image of Total CEO Patrick Pouyanne. From Total Twitter. |
Net results for full year 2015 came in at US$10.5 billion, compared to $12.8 million in 2014, representing an 18% drop. For Q4 2015, net income was $2 billion, a 26% decrease from 2014’s $2.8 billion.
“Hydrocarbon prices fell sharply in 2015 with Brent decreasing around 50%. In this context, Total generated adjusted net results of $10.5 billion, a decrease of 18% compared to 2014, the best performance among majors.” Total CEO and chairman Patrick Pouyanne said. “The resilience in a degraded environment demonstrates the effectiveness of the group’s integrated model and the full mobilization of its teams.”
Due to oil prices, the company reinforced its discipline on spending in 2015 by using its cost reduction program that was launched in 2014 that ultimately saved $1.5 billion, exceeding its original objective of $1.2 billion. To enable OPEX savings of $2.4 billion in 2016, and a planned $3 billion for 2017, Total plans on following the cost production program going forward.
In addition, the cost reduction program saved Total’s upstream production for the year, setting a record for the company. Upstream production jumped 9.4%, and was driven by the start up of nine projects, including CLOV and Eldfisk II.
The company’s assets sales in 2015 came in at $4 billion, which is in line with the $10 billion program planned between 2015-2017. Total expects to save as much for 2016.
In Q4, production increased 6%. During the period, Total started production at Moho Phase 1b offshore Congo; at the Chevron-operated Lianzi field, a cross border project between Congo and Angola, offshore Africa; and shipped the first LNG cargo from Gladstone LNG in Australia.
Total has four more major start ups planned for 2016, besides the late start up for the Laggan-Tormore condensate subsea-to-shore development, which took place on 8 February after about a one-year delay. The company anticipates its production to grow 4% this year, compared to 2015.
For 2016, Total is reducing its capex to $19 billion, representing more than a 15% decrease from 2015, which will mark a transition to investments of $17-19 billion from 2017 and beyond.
Read more:
Late Laggan-Tormore comes onstream
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