Sagging refining margins, upstream output hurt 1Q earnings for Total.

摘要

The French energy major reported a 10% decline in 1Q net profit to $3.33B from $3.7B in 1Q 2013. Total cited a drop in refining margins in Europe due to ongoing overcapacity issues in the domestic refining sector there coupled with a drop in upstream output on the quarter due to ongoing security concerns in Libya and Nigeria coupled with the loss of an oilfield in Abu Dhabi to the UAE in Jan. The company also noted a $350MM write-off on a gas project it had hoped to develop with Russian Gazprom in the Arctic but has now been shelved due to rising costs. Commenting on the earnings report from Total analysts at Bernstein wrote in a note, "The miss came from the downstream business. Upstream net income per barrel was $15.8/boe vs. expectations for $14.3/boe due to higher equity income (from affiliates Novatek and Angola LNG)."