Oil companies Total, Chevron and StatoilHydro all showed the benefit of soaring oil and gas prices as they reported significantly higher second-quarter profits yesterday.
Total posted adjusted net income for the period of £2.9billion, up 20% year-on-year thanks to a strong performance in its upstream sector, where output increased by 1.3% to 2.35million barrels of oil equivalent per day (boepd), helped by first production from fields including Jura in the UK North Sea.
The company’s sales for the quarter reached £38.08billion, up 23% on the corresponding quarter in 2007.
Chief executive Christophe de Margerie said demand for oil remained strong, but geopolitical uncertainties or security issues combined with a decline in mature producing areas had constrained supply.
As a result, there was an almost continuous increase in the price of crude, while natural gas prices also rose sharply in major markets.
Chevron reported net income of £3billion for the second quarter, compared with £2.7billion a year earlier, when earnings included a net gain of about £250million on the sale of an investment and redemption of debt.
It said sales and other operating revenue in the second quarter of 2008 were £40.5billion, compared with £27billion the year before.
Chief executive Dave O’Reilly said continued strong cash flows from operations had enabled a record level of reinvestment in the business. Worldwide oil-equivalent production was 2.54million boepd in the period, compared with 2.63million in the corresponding period last year.
Meanwhile, Norway’s StatoilHydro posted net income in the second quarter of £1.86billion, up 36% on a year earlier. It said the increase was mainly the result of a 44% jump in realised crude oil, condensate and natural gas liquid prices, a 49% increase in gas prices and an 8% increase in lifted volumes.
Chief executive Helge Lund said: “The second-quarter result is primarily influenced by high oil and gas prices. Our record earnings are also coming as a result of operational focus contributing to high production.”
StatoilHydro delivered total production in the quarter of 1.71million boepd.
Revenue for the period was £16.79billion, up 34% on the previous year.