Total's Profit Falls; Shares Gain On Increased Production Outlook

Europe's largest oil refiner, Total SA, reported that its 4Q adjusted earnings declined 10% but that profits for FY 2006 reached record levels. By the numbers, net earnings fell to 2.74 billion euros ($3.6 billion), good for 1.20 euros a share, from 3.1 billion euros, or 1.30 euros a share, a year ago. Revenue slipped 6% to 36.4 billion euros. Looking ahead, Total said that it expects to raise its production, which fell 2.5% in the quarter, by more than 5% a year through 2010 - more than current estimates assumed. Shares rose 2% in Paris on the news.

Sources: Wall Street Journal, Bloomberg, MarketWatch, Reuters
Commentary: Iran's Oil Exports May Dry Up Without Foreign Help • Fuel For Thought: Which Integrated Oil Company Should You Own?
Stocks/ETFs to watch: Total SA (TOT). Competitors: Royal Dutch Shell plc (RDS.A), BP (BP), Exxon Mobil (XOM). ETFs: SPDR Oil & Gas Exploration & Production ETF (XOP), iShares Dow Jones U.S. Oil & Gas Exploration/Production (IEO)

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