Integrated oil and gas company
) reported first-quarter 2013 operating earnings of $1.67 per
share (€1.26 per share), a penny below the Zacks Consensus
Estimate. Operating earnings declined 7% from $1.78 (€1.36 per
share) reported in the year-ago period.
The decline in earnings was primarily due to lower contribution
from the Upstream segment. Higher technical costs, and lower
production and sales due to a less favorable business environment
weighed on the performance of this segment.
Total revenue at the end of first-quarter 2013 was $63.56 billion
(€48.13 billion) against $67.07 billion (€51.16 billion) in the
first quarter of 2012. The year-over-year decline in revenue was
Total hydrocarbon production averaged 2,323 thousand barrels of
oil equivalent (kboe) per day, down 2% from the year-ago
production. Output during the quarter was negatively impacted by
ongoing security conditions in Nigeria, accidents in U.K., normal
declines and maintenance outages and sale of assets in U.K.,
Columbia and Nigeria. The aforesaid negatives were marginally
offset by production from new projects.
Liquids production averaged 1,193 thousand barrels (MBbls) per
day, down 3% year over year. Lower production in Europe, Africa
and South America resulted in the year-over-year downfall.
Gas production was 6,137 thousand cubic feet (Mcf) per day, down
1% year over year.
Total refinery throughput for the first quarter of 2013 was down
4% year over year to 1,763 MBbls per day. The yearly decline was
mainly due to the closure of Donges refinery for maintenance and
closure of Normandy refinery for modernization.
The realized price for Brent in the first quarter of 2013 was
$112.60 per barrel, down 5.1% from $118.6 per barrel in the first
quarter of 2012. The average realized liquid price deceased 7.4%
year over year to $106.7 per barrel from $115.20 per barrel a
Realized gas prices for the reported quarter increased 16% year
over year to $7.31per Mbtu from $7.16 Mbtu in the first quarter
of 2012. Realized hydrocarbon prices decreased 6% to $77.4 per
barrel of oil equivalents (boe) from $82.10 in the first quarter
Cash and cash equivalents of TOTAL as of Mar 31, 2013, were
$17.18 billion (€13.41 billion) versus $17.78 billion (€13.33
billion) as of March 31, 2012.
The net debt-to-equity ratio was 25.9% on Mar 31, 2013 versus
22.6% on March 31, 2012.
TOTAL's cash flow from operation in the first quarter 2013 was
$4.9 billion (€3.71 billion), down 29% from $6.9 billion (€5.26
billion) in the comparable period last year.
Sale and Purchase of Assets
During first quarter 2013, TOTAL made acquisitions worth $1.23
billion (€0.93 billion). The company expanded by acquiring a 6%
additional stake in Ichthys LNG and received exploration permits
in Mozambique. In addition the carry agreement in the Utica shale
gas and condensate field in the U.S. also widened its operations.
In the reported quarter, TOTAL disposed of assets worth $0.55
billion (€0.42 billion) comprising of the sale of a 49% interest
in the Voyageur upgrader project in Canada. The company also
decided to hive a few assets in the upcoming quarters, which are
expected to generate proceeds of $5 billion.
TOTAL's net investment in the first quarter of 2013 was $7.1
billion (€5.4 billion), down 26.8% from $5.6 billion (€4.2
billion) in the first quarter of 2012.
Other Company Releases
) first-quarter 2013 earnings of $2.12 per share surpassed the
Zacks Consensus Estimate of $2.03 by 4.4%.
) is slated to release its first quarter earnings on Apr 30. The
Zacks Consensus Estimate is $1.05.
) is slated to release its first quarter earnings on May 2. The
Zacks Consensus Estimate is 79 cents.
TOTAL started off 2013 on a lower-than-expected note, mainly due
to lower production and a decline in the realized prices of
products sold, except gas. We remind investors that a substantial
portion of the company's production comes from Europe and Africa.
The year-over-year decline in production from these two regions
lowered the overall production of the company.
The company continues to divest assets and acquire new ones,
which hold better prospects. The strong financial position of
TOTAL supports its worldwide acquisition and exploration
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France-based TOTAL is one of the largest publicly traded,
globally integrated oil and gas companies based on production
volumes, proved reserves and market capitalization. The company
has exploration and production operations across five continents.
TOTAL S.A. retains a Zacks Rank #3 (Hold).