Total SA reported that its first-quarter net profit jumped 18 percent amid record-high energy prices.
Total Oil reported net profit rose to
€3.6 billion ($5.6 billion) in the first quarter from €3.05 billion a year earlier. Results were driven by its "upstream" division.
Chief
Executive Christophe de Margerie noted "new record highs" in oil prices
and a substantial increase in gas prices. He said average Brent crude
prices in the first quarter of 2008 were 67 percent higher than a year
ago, and 9 percent higher than the previous quarter.
Oil prices,
which this week hit a record $122.73 a barrel, are making big profits
routine in the oil industry. Total's competitors Chevron Corp., Exxon
Mobil Corp., ConocoPhillips, BP PLC and Shell PLC have all
reported increased first-quarter earningsas reported by PetrolWorld.
Total's results don't
fully reflect the price of oil because the European company reports in euros. Because crude is sold on the global
market in dollars, which have been falling compared to the European
currency, it translates in to fewer euros for Total.
After
stripping out an after-tax inventory effect, special items and other
intangibles, adjusted net profit increased 9 percent to 3.25 billion
euros ($4.87 billion) in the first quarter from 2.99 billion euros a
year earlier. The results were only slightly above market expectations, said Jason Kenney, an Edinburgh-based oil analyst at ING.
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