Total hails upstream business as 2017 income leaps

Total news
The Total SA logo is seen at a Total oil refinery in Spergau, Germany, Friday, March 31, 2006. Photographer: Jochen Eckel/Bloomberg News

Energy giant Total hailed its upstream business after delivering double digit increases in income in 2017.

Total said its oil and gas production wing increased its operating cash flow by close to 40% over the 12 months, bolstered by higher crude prices.

For the full year, hydrocarbon production increased by 5% to 2.56million barrels per day.

The start-up or ramp-up of projects in the Republic of Congo and Kazakhstan, as well as the Edradour-Glenlivet fields in the North Sea, played a big part in the increase.

In all, five new upstream projects were launched during 2017 as the company “took advantage of the cyclical low”.

Meanwhile, the business is strengthening its position in the North Sea with the acquisition of Maersk Oil. The deal is expected to close during the current quarter.

Adjusted net income was £7.6billion, up 28% year-on-year, while operating cash flow jumped 24% to £15billion.

Group sales lifted by 15% to £123billion.

Also today, Total said it would increase shareholder dividend payments by 10% between 2018 and 2020, and buy back £3.6billion worth of shares over the same period.