Total Q1 hydrocarbon production sinks, profits rise on higher prices
London, (Quantum Commodity Intelligence) - French energy company Total saw hydrocarbon production fall 7% on the year due to unplanned maintenance at facilities in Norway, compliance with OPEC+ cuts and the natural decline of its oilfields, the oil major said in Q1 results Thursday.
Total hydrocarbon production was 2.86m boe/d in the first quarter of 2021 compared with 3.08m boe/d in the corresponding period the year before.
Despite that, the company said oil and gas production would flatline in 2021 compared with 2020.
Production of oil including bitumen fell 11% to 1.27m boe/d, while gas production rose 5% on the year to 1.59 million boe/d.
The figures were published in Q1 results that showed earnings have recovered to close to levels before the coronavirus pandemic hit mainly due to higher oil and gas prices.
Oil prices rose 38% and gas 24% on a quarter-to-quarter basis, the company said.
Adjusted net income was $3 billion, exceeding the $2.8 billion the company posted in Q1 2019 by 9% and 69% up on the Q1 2020 figure.
Rebrand
Total is rebranding itself as a sustainable energy company as it seeks to increase the amount of revenue it makes from non-hydrocarbons.
In the past year, the company purchased a 20% stake in the world's largest solar developer, Adani Green Energy Limited, secured rights to jointly develop 1.5 GQ of offshore wind in the UK and purchased 4 GW of solar and energy storage projects in the US.
However, the company has a long way go, it booked net operating income for exploration and production of $1.975 billion.
That compared with $985 million for its gas, renewables and power business, with the bulk of that in fossil fuel gas.
Total said it was preparing to invest $12-13 billion in investments this year, with half going to maintain existing assets and the rest for growth, including bolstering its renewable energy portfolio.
