Oil group Total Q2 profit down 12 pc to 2.7 bln euros

July 29, 2011 | 15:55

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French oil giant Total said Friday its profits slid by 12 per cent in the second quarter of 2011 to two billion euros ($2.9 billion) but maintained its positive outlook for the second half of 2011.

It attributed the fall in net profits, compared with the same period last year, partly to a decline in the refining sector in Europe and a halt to its production in Libya due to the civil conflict there.

"The combination of sustained global demand and geopolitical troubles increased tensions in the oil market during the second quarter," the group's chief executive Christophe de Margerie said in an earnings statement.

When calculated in dollars and adjusted for variations, "the net result for the quarter increased by seven per cent compared to the second quarter 2010, reflecting the benefit of a more favourable environment," he said.

This "more than offset the negative impacts of portfolio changes, higher maintenance, shutdowns in Libya and continued weak refining margins in Europe," he added.

"Total begins the second half of 2011 very confident in its outlook for profitable growth."

Adjusting for certain variations, the group calculated its net income for the quarter at 2.8 billion euros, with a fall of six per cent on the same quarter last year.

It said sales rose by 15 per cent in the first half of 2011 to 91 billion euros compared with the same period in 2010. Second-quarter sales were up nine per cent compared with a year ago.

AFP

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