Total's Net Rises as Record Oil Prices Offset Falling Dollar

France's largest oil company, Total S.A., reported its Q3 net income rose 29% on strong production and record oil prices (full earnings call transcript later today). Net income came in at 3.12 billion euros ($4.6 billion), good for EPS of 1.37 euros ($1.89), versus EPS of 1.05 euros a year earlier. Revenue rose 3% to 39.43 billion euros ($57.96 billion). Meanwhile, adjusted net income fell 3% to 3 billion euros (EPS of 1.32 euros, or $1.82). Dollar estimates were for adjusted EPS of $1.83 on revenue of $49.23 billion. The company was able to increase production as new fields came online in Qatar and Norway. Total predicts its output will increase by 4% a year on average through 2010. Revenue would have been higher, but an average oil price increase of 6.4% Y/Y was offset by a similar fall in the dollar versus the euro, which cut into profits. Shares were higher by 2.8% in pre-market trading in New York (as of 6:23 AM ET).

Sources: Press release, Bloomberg, Reuters, MarketWatch, AP
Commentary: The Black Swan Makes The Case For Total, Anadarko • Total S.A. Benefits from Constructive Russo-French Interdependence • A 'Total' Shift in the Oil Industry
Stocks to watch: TOT. Competitors: STO, XOM, BP, RDS.A, CVX. ETFs: ADRD, ADRU
Earnings call transcript: Total Q2 2007

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