French energy firm large fall in profits

PARIS - Agence France-Presse

The French oil major Total said on July 27 that its 2012 second quarter net profit plummeted by 42 percent to 1.6 billion euros ($1.96 billion).
 
In the April-June period, profit when adjusted for earnings on holdings in other companies and stock effects, a closely watched industry measure, slipped by a more modest 2 percent to 2.9 billion euros, a Total statement said.
 
The result was hurt by several factors including deflated oil prices in the spring and the Elgin gas leak in the North Sea. the company said.

The leak, which took nearly two months to fix, sent Total’s share price plunging earlier this year and cost the company $130 million over the quarter. Net profit was also hit by a $316 million provision in anticipation of a settlement with U.S. authorities on gas contracts made with Iran in the 1990s.
 
The oil group said that its output in the three months from April through June rose 2.0 percent to 2.261 million barrels of oil equivalent per day.

The large oil companies are announcing fall in profits due to the sharp fall in crude prices.

Shell posted $6 billion (4.94 billion euros) second quarter frofits on July 26, short from the $8 billion in the same period a year ago. Spanish Repsol also said its second quarter net profits fell 45 percent from the same period of 2011 to 274 million euros ($332 million).