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Total, Eni Earnings Drop Lower

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French and Italian oil majors, Total SA and Eni SpA reported lower second-quarter profits on Friday, reflecting dollar weakness and production outages partly due to fighting in Libya which shut some fields.

Total said second-quarter net income, excluding one-offs and non-cash gains due to changes in the value of fuel inventories, fell 6 per cent from the same period last year to 2.79 billion euros ($4 billion), just below the 2.85 billion average forecast in a Reuters analysts poll.

Eni’s underlying net profit fell 14 per cent to 1.44 billion euros compared with an average forecast of 1.65 billion, as Libyan outages pushes its production down 12 per cent to 1.49 million barrels of oil equivalent per day (boepd).

A 13 per cent dip in the dollar hit both companies as the price of the crude they produce is denominated in the United States’ currency.

In dollar terms, Eni’s net income fell only 2 per cent and Total’s underlying result was up 7 per cent, performances that still paled in comparison to those of bigger rivals Royal Dutch Shell (RDSa.L) and Exxon Mobil , which posted profit rises of 56 per cent and 41 per cent, respectively.

Even at Norway’s Statoil, the rise was 39 per cent.

Total shares traded down 1.8 per cent at 37.65 euros by 1100 GMT in Paris, wiping more than 1.5 billion euros of its market value, while Eni shed 1.1 per cent to 15.21 euros in Milan.

The European oil and gas sector fell 1.1 per cent.

“The earnings miss against the consensus … was notable because it is so rare at Total, which is so consistent,” UBS analyst Jon Rigby said in a note, while CA Cheuvreux analyst Jean-Charles Lacoste called Eni’s update disappointing.

Total lost around 2 per cent of oil and gas output, despite the acquisition of a 12 per cent stake in Russian gas company Novatek , as the Libyan conflict and maintenance downtime in North Sea fields pushed overall production to 2.31 million barrels of oil equivalent per day.

This highlighted the difficulty for Western oil companies to match natural field decline with new finds.

Total has spent billions of euros in recent months to build up its presence in energy-rich countries such as Russia, Canada, Brazil or Australia, but it has yet to fully benefit from this investment.

The start-up of the 220,000 barrel per day Pazflor field offshore Angola should contribute “substantially” to near-term output growth, while major gas projects in Australia and Russia will bolster production at a later stage, the French group said.

It targets 2 per cent average annual output rise in 2010/15.

Meanwhile Eni predicted a 10 percent drop in hydrocarbon production from 1.82 million boepd in 2010, a fall stemming from the near complete shutdown of operations in Libya, where Eni is the biggest foreign operator.

Eni said it could quickly restart output at its Libyan fields when the fighting there ended, as no damage had been reported to its facilities — echoing comments on Thursday from Spanish rival Repsol , which also has large operations in the North African country.

Total, Europe’s largest refiner by capacity, also reported lower profits from its refining division due to weak crude processing margins. The so-called downstream business saw adjusted net operating income fall 59 per  cent year on year.

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Oil & Energy

NNPCL Assures On OB3 Pipeline Completion

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The Nigerian National Petroleum Company Limited (NNPC Ltd) has said the Obiafu-Obrikom-Oben (OB3) Gas Pipeline would now be completed next quarter.
This is as the national oil company said it would continue to invest in the development of huge oil and gas infrastructure to make it easy for operators and prospective investors to carry out their business in Nigeria.
The Executive Vice President, Upstream, Oritsemeyiwa Eyesan, disclosed this at the Offshore Technology Conference (OTC), in Houston, Texas, United States of America.
Speaking at one of the panel sessions of a luncheon organised by the Petroleum Technology Association of Nigeria (PETAN), with the theme: “Sustainable Energy Solutions for Africa’s Future (Nigerian Perspective)”, Eyesan stated that NNPC Ltd.’s objective was to ensure that there is a healthy balance of energy sources in the country.
She explained that though the oil and gas sector is not where it ought to be, much progress had been made between last year’s edition of the OTC in terms of opening up the sector for investments and infrastructural development.
While identifying funding as the major challenge impeding the development of the sector, Eyesan listed some of the bright spots in the industry to include the Executive Orders signed by the President to open up the sector, the imminent resolution of the assets divestment by the International Oil Companies (IOCs), and the aggressive execution of gas infrastructure projects such as the OB3 Gas Pipeline, which she said would be completed in the next quarter.

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TotalEnergies Targets 100 Startups In 2024

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As part of its support to businesses in Nigeria and Africa,  TotalEnergies Nigeria has launched the 2024 edition of its Startuppers challenge.
By this, the multinational aims at empowering 100 businesses across 32 African countries with N8 million cash prize, personalised coaching, and media representation.
The year’s edition of the challenge, launched virtually at an event attended by the Managing Director of TotalEnergies Nigeria Plc, Dr. Samba Seye, and other executives of the energy company, Last Thursday, would be used to commemorate the 100th anniversary of the multinational.
Presenting the form of this year’s competition, the General Manager, Total Country Service, TotalEnergies, Mrs Adesua Adewole, said registration for the challenge would open on May 13th and close on June 18th, 2024.
Adewole explained that 100 startups would be selected at first before 5 finalists would be selected, adding that the shortlisted businesses would pitch to a jury made of experts who would select winners across three categories.
“In December, we will have 100 businesses to celebrate in Africa. In past edition, we had  only six winners who were invited to Paris but this year, we will have 100 winners who will be going to selected location where they will be celebrated”, she said.
Adewole stated that Africa was special to TotalEnergies, hence the focus.
In her words, “Africa is special to us. When you look at Africa, our youths make up 60%.  They are the ones who will develop he continent, so we streamlined this to them to help them develop their businesses or ideas, scale up and become the business leaders of tomorrow.
“The aim of this 4th edition is to support and encourage young African entrepreneurs to innovate and bring their projects to reality in their country of application”.
Explaining further, the Country Communications Manager, TotalEnergies Nigeria, Dr Charles Ebereonwu, said “we have not attained 100 years before.
“Apart from celebrating 100 years, we have introduced new dimensions like your empowerment of women and equality. All entries will be subjected to whether they take into consideration these dimensions”.
Targeted by the challenge are startups less than three years old or pioneering a business idea with a positive impact on their communities and/or the planet.
“The aim of this 4th edition is to support and encourage young African entrepreneurs to innovate and bring their projects to reality in their country of application”, a statement from the firm said.

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TCN Targets Power Restoration To North-East, May 27

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The Transmission Company of Nigeria (TCN) has said electricity supply will be fully restored to the North-East by May 27.
TCN’s spokesperson, Ndidi Mbah, who disclosed this in a statement made available to newsmen, weekend, said the commission’s contractors were working to erect four new transmission towers along the Jos-Gombe axis, to enable the restoration of power supply to States in the North-East region of the country.
Recall that TCN had on April 23, said four of its towers along the Jos–Gombe 330 kilo volt (kV) transmission line were vandalised, affecting electricity supply to Gombe, Damaturu, Maiduguri, Yola, Bauchi, and Jalingo.
“The tower collapse affected Gombe, Damaturu, Maiduguri, Yola, Bauchi and Jalingo. Immediately after the incident, however, TCN engineers worked first to redistribute available bulk supply on the Jos, Bauchi, Gombe 132kV line between Jos and Yola Discos, while work commenced immediately at reconstructing the four vandalised towers”, the commission said.
It continued that “Presently, we are rebuilding the four towers simultaneously. Progress is evident, with one tower nearing 80% completion, another at 60%, a third at 30%, and dismantling work finished on the fourth tower”.
Additionally, she said, “tower members” are being fabricated and assembled on-site to expedite work, adding that TCN is dedicated to the quick restoration of bulk power on the line route.
“Construction work on the Jos – Gombe transmission line, taking supply up to Damaturu and environs will be completed and energized by the 20th of May, 2024, while the Damaturu – Maiduguri axis will be completed on the 27th of May, 2024.
“Expectedly, bulk power transmission would be fully restored on the affected 330kV transmission line by the 27th of May. Yola and Jos DisCos would also be able to offtake and distribute optimally from TCN substations.
“For now, only 38MW is wheeled to both Jos and Yola Distribution companies, with each receiving 19MW each. Efforts to take some of the available power to Jalingo was hampered by very high voltage on the line, which could cause a system disturbance”.
According to the spokesperson, TCN is aware of the inconveniences caused by the current insufficient power supply through Yola and Jos DisCos to electricity customers in the affected states.
Mbah further said the company pledged to earnestly expedite work on the towers to guarantee that the towers are completed within the specified time frame.

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