Total (NYSE:TOT) +2.4% premarket after reporting slightly better than expected Q4 earnings and announcing plans to increase dividends by 10% over the next three years, with the 2018 interim dividend rising 3.2% to €2.56/share.
“If the price is higher than $50, we want to be able to share part of the upside with our shareholders,” an upbeat CEO Patrick Pouyanne said during TOT's earnings conference call. “Given the production growth in our hands and the purchase of Maersk Oil, our cash flow per share will grow rapidly.”
TOT says Q4 net profit rose 19% Y/Y to $2.87B, in line with analyst consensus expectations, while Q4 production of 2.56M boe/day was 4.6% better than a year ago but slightly below consensus; it sees 2018 output rising by another 6%.
Q4 adjusted net operating income from refining and marketing fell 22% Y/Y to $886M, exploration and production jumped 79% to $1.81B, and cash flow from operations rose 23% to $8.62B.
TOT says it expects to achieve more than $4B of cost savings in 2018 and make $14B in organic investments.
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