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Total SA Q2 Profit Down On Weak Prices; Sees Production Growth In FY19

French energy giant Total SA (TTA.L,TTFNF.PK,TOT) reported Thursday that its second-quarter net income (Group share) declined 26 percent to $2.76 billion from last year's $3.72 billion. Earnings per share declined to $1.01 from $1.38 in the prior year.

Adjusted net income (Group share) was $2.89 billion, compared to $3.55 billion last year. Adjusted earnings per share were $1.05, compared to $1.31 last year. In euro terms, adjusted earnings per share were 0.94 euro, compared to 1.10 euro last year.

Adjusted net operating income from business segments declined 14 percent from last year to $3.59 billion.

Sales for the quarter declined to $51.24 billion from prior year's $52.54 billion euros.

Hydrocarbon production was 2,957 kboe/d in the quarter, an increase of 9 percent from last year. Meanwhile, average price of liquids dropped 7 percent to $63.7/barrel. Average price of gas dropped 17 percent to $3.82/Mbtu.

Looking ahead, the company expects production growth to exceed 9 percent in 2019. The expected growth reflects the ramp-up of projects started in 2018 and the startups in the first half 2019 of Kaombo Sul in Angola and Culzean in the UK North Sea, as well as the upcoming Johan Sverdrup in Norway and Iara 1 in Brazil.

The company said it maintains its spending discipline in 2019 with an organic investment target of around $14 billion and an average production cost of $5.5/boe.

Further, the dividend in euro will be increased by 3.1 percent in 2019 representing a total increase of 6.5 percent since 2017, in line with the target increase of 10 percent over the period 2018-2020.

Total will buy back $1.5 billion shares in 2019 as part of its $5 billion share buyback program over the 2018-2020 period.

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