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Total Q2 earnings hit by lower production in Libya

Exploration & Production

Total posted a fall in second quarter profits by six per cent to US$4 billion compared to the pervious year, as the company was hampered by lower overall output and weaker refining margins.


In a company statement, Total revealed that production dropped two per cent to 2.31mn bpd. With production declines from the company’s European and North African projects the main cause for Total’s production downturn.

Production disruptions in Libya resulted in a drop in North African production to 628,000 bpd, down 16 per cent from the 752,000 bpd recorded in June 2010 and 10 per cent down from the 691,000 recorded bpd produced in the March quarter.

The combination of sustained global demand and geopolitical troubles increased tensions in the oil market during the second quarter,” Chief Executive Officer Christophe de Margerie said.

But the French oil giant is confident for a greater growth in the second half of the year.

"With a strong balance sheet and a dynamic pace of execution in all of the group's segments, Total begins the second half of 2011 very confident in its outlook for profitable growth to benefit shareholders," Margerie added.

Total said it may raise investment to about US$23 billion annually in the next few years from about US$20 billion to pay for the new ventures.