Total Reports Lower Profit on Escalating Costs

France-based Total follows Royal Dutch Shell and BP with reports of lower earnings on diminished demand and decreasing refining margins. The company also reported a 14% year-on-year increase in net investments to 19,487 millions of euros, accounting for 7.7% of the Group’s sales.

 “Having demonstrated strong operational progress in every segment, we are confident in the ability of our teams to develop value-creating projects and to prevail in the necessary battle against rising costs,” Chairman and CEO Christophe de Margerie commented in the news release.

The company also raised dividends. 

In 2013, it started production on the Ekofisk South field in the Norwegian North Sea, launched the Yamal LNG project in Russia and Shah Deniz Phase 2 in Azerbaijan. It also acquired working interests in the nascent UK shale gas industry.  

As of 31 December 2013, Total increased its gas reserves by 7%, while the liquids reserves decreased by 5%. 

‘The 2013 proved reserve replacement rate, based on SEC rules, was 119%. The 2013 organic proved reserve replacement rate was 109%,’ reads the note. 

Last month, it warned escalating costs, calling on peers to revise the most expensive projects.