Integrated oil and gas company
) reported first-quarter 2014 operating earnings of $1.46 per
share (€1.07 per share), in line with the Zacks Consensus
Estimate. However, earnings were 10.0% lower than the year-ago
figure of $1.63 per share (€1.23 per share).
The year-over-year decline in European refining margins impacted
the company's earnings.
Total revenue was $60.69 billion, down 5% from $63.56 billion in
the year-ago quarter.
Production and Reserve
Total hydrocarbon production averaged 2,179 thousand barrels of
oil equivalent (kboe) per day, decreasing 6% from the year-ago
quarter. The decline was primarily attributable to portfolio
changes and security issues in Nigeria and Libya, which totally
offset the benefits derived from new startups.
In the reported quarter, liquids production averaged 1,031
thousand barrels (MBbls) per day, down 14% from the prior-year
quarter. Liquid production got a beating in the Middle East,
Africa, South America and Asia-Pacific, which pulled down the
Gas production was 6,268 thousand cubic feet (Mcf) per day, up 2%
year over year. Strong performance from the Africa, North America
and Asia-Pacific regions more than offset the drop in gas
production in the Middle East and South America.
In first-quarter 2014, the realized price for Brent decreased 4%
to $108.2 per barrel from $112.6 per barrel in the prior-year
quarter. The average realized liquid price fell 4% to $102.1 per
barrel from $106.7 per barrel in first-quarter 2013.
Realized gas prices dropped 3% year over year to $7.06 per Mbtu.
Realized hydrocarbon prices in first-quarter 2014 decreased to
$73.4 per barrel of oil equivalents (boe) from $77.4 per boe in
Cash and cash equivalents as of Mar 31, 2014, were $22.78 billion
versus $17.17 billion as of Mar 31, 2013.
The net debt-to-equity ratio was 23.5% at the end of
first-quarter 2014 versus 25.9% at the end of first-quarter 2013.
This indicates that the company has lowered its debt burden over
the past twelve months.
TOTAL's cash flow from operation in first-quarter 2014 was $53.38
billion, up 8.6% from $49.13 billion in first-quarter 2013. The
increase was primarily due to higher net income.
Sale and Purchase of Assets
TOTAL acquired assets worth $299 million during the quarter. The
investments were made to carry on the Utica gas and condensate
field in the U.S. and the acquisition of marketing assets
TOTAL disposed assets worth $1.47 billion which comprised the
sale of the Angola block 15/06 and partial IPO interest in
Gaztransport & Technigaz.
TOTAL's net investment in first-quarter 2014 was $4 billion, down
39.4% from $6.6 billion in the first quarter of 2013.
Other Company Releases
) reported first quarter earnings of 82 cents per share, 32.3%
above the Zacks Consensus Estimate.
) reported first quarter earnings of $1.04, missing the Zacks
Consensus Estimate by 5.4%.
TOTAL's performance in the reported quarter was impacted by a
decline in production as well as lower prices of the products
The company has scheduled the start-up of various upstream and
downstream projects in the second quarter, which will boost
performance in the forthcoming quarters. However, the prevailing
security issues in Libya and Nigeria are a concern as liquid
production from Africa decreased 8% year over year.
TOTAL currently holds a Zacks Rank #3 (Hold). Another industry
) is slated to release its first quarter earnings on May 1, 2014.
The Zacks Consensus Estimate is pegged at $1.88 per share.
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