French oil and gas company Total has announced its results for the second quarter (Q2) of 2019, reporting decreased profits as a result of lower oil and gas prices.

The company’s adjusted net income in Q2 2019 was $2.9bn, or $1.05 per share, a 26% decrease from Q2 2018. Total adjusted net income for the first half (1H) of 2019 was $5.6bn or $2.07 per share, a 12% decrease compared to 1H 2018.

Adjusted net operating income for Total’s Exploration and Production division was $2,022m in Q2 2019 and $3,744m in 1H 2019, a 13% decrease from Q2 2018 and a 9% decrease from 1H 2019. Total cited lower Brent and natural gas prices as the reason for this drop in income.

Total chair and CEO Patrick Pouyanné said: “Markets remained volatile with Brent averaging $69 per barrel in the second quarter, an increase of 9% compared to the previous quarter, but natural gas prices were down 36% in Europe and 26% in Asia.

“In this context, with a slight increase in production to 2.96 Mboed, adjusted net income increased by 5% compared to the previous quarter to $2.9bn, and the return on equity remained above 11%.”

Total’s hydrocarbon production was 2,957 kilo barrels of oil equivalent (kboed), an increase of 9% compared to Q2 2018. The company attributed this increase in production to the start-up and ramp-up of new projects, noting that it was partially offset by natural decline and maintenance.

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By GlobalData

These projects also accounted for LNG sales increasing by 65% to 4.1 metric tonnes (Mt) in Q2 2019 compared with the 2.5 Mt sold in Q2 2018.

Pouyanné said: “Exploration & Production benefited from the higher Brent with a 15% increase in operating cash flow before working capital changes.

“Although gas prices fell sharply, Integrated Gas, Renewables and Power increased its operating cash flow before working capital changes by 42% thanks to 8% production growth and a 10% increase in LNG sales. Compared to the second quarter 2018, operating cash flow before working capital changes increased by 77%, driven by a doubling of LNG sales.”