Boston, MA 05/09/2014 (wallstreetpr) – Shares of Total SA (ADR) (NYSE:TOT) were down by 1.3% after the announcement of the result for its first quarter 2014 (1Q2014). Total’s net profits in were down by 10% to $1.46 per diluted shares due to declining in oil and gas output and lower margins from the European refineries.
Operating highlights
In 1Q2014, Total SA (ADR) (NYSE:TOT) reported sales of $60.7 billion (-5%) and adjusted net operating income of $3.7 billion (-8%) from its business segments. The decrease was due to declining performance across segments resulted from weak environment in Europe.
A. Upstream
The segment reported lower revenues of $14.1 billion and adjusted net operating income of $3 billion due to low realized hydrocarbon prices. In addition, 6% reduction in oil and gas output to 2.179 million barrels of oil equivalents per day further compressed the margin. The decline was mainly due to the expiration of ADCO licenses in UAE (-5.5%) and security issues in Nigeria and Libya (-1.5%).
B. Refining & Chemicals
European refining margin compressed significantly to 6.6 $/t (-75%), which impacted the segment performance – revenues were down by 5% to $38.3 billion and adjusted net operating income by 21% to $346 million.
C. Marketing & Services
Bad weather conditions and lower margin in Europe decreased the revenues to $26 billion (-5%) and adjusted net operating income to $261 million (-21%).
Financial efficiency
Operating cash flow increased by 9% year over year to $5.3 billion; however, adjusted operating cash flow was down by 8% to $6.2 billion. Lower capital investments during the period generated positive net cash of $1.3 million compared to cash used of $1.7 million during 1Q2013.
Total SA (ADR) (NYSE:TOT)’s Net debt was $24.1 billion with shareholder’s equity of $102.6 billion as of March 31, 2014. The net debt/ equity ratio was 23.5% and ROACE for the 12 months was 12.3% during the period.
