Patrick Pouyanné comments on second quarter results
Total’s Board of Directors, under the chairmanship of Thierry Desmarest, met on July 28, 2015, to review the Group’s second quarter accounts. Commenting on the results, CEO Patrick Pouyanné said: 'Oil prices recovered slightly in the second quarter to about US$60/b but remain more than 40% lower than a year ago. Despite the sharply lower oil price, Total reported adjusted net income of US$3.1 billion, a decrease of only 2% compared to the same period last year, thanks
to productivity gains in all the business segments.
In the Upstream, the Group started up its fourth major project this year with first production from Termokarstovoye in Russia. The 12% increase in production over the past year demonstrates that our growth strategy is working, in spite of the shutdown of Yemen LNG for security reasons. The excellent Downstream results highlight the resilience of our integrated model. The Refining & Chemicals and Marketing & Services segments are fully benefiting from higher refining, petrochemical and marketing margins that are sustained by stronger demand in the context of lower prices. In European refining, Total is committed to the conversion project at La Mède and the restructuring of Donges in France, reducing the capacity of Lindsey in the United Kingdom and the sale of Schwedt in Germany. In addition, Total is implementing plans to reduce its cash breakeven. The Group expects to exceed its 2015 objective to cut operating costs by US$1.2 billion in 2015 and confirms the announced reduction of 2015 Capex to US$23-24 billion.
Finally, despite the weak economic conditions, Total strengthened its balance sheet during the first half of the year by reducing its gearing from 31% to 26%.'
Edited from a press release by Louise Mulhall