PARIS, July 26 (Reuters) - Oil and gas major Total reported better-than-expected results in the second quarter thanks to new record oil production and high oil prices, which enabled it to raise its output and savings targets for 2018.
The French group said second quarter adjusted net profit soared 44 percent to $3.6 billion, compared with analysts’ estimates of $3.4 billion.
Oil production rose by 8.7 percent to 2.717 million barrels of oil equivalent per day, the highest ever produced in a quarter, driven by the early completion of its Maersk Oil deal and the ramp-up of several projects including Yamal LNG in Russia and Moho Nord in Congo.
Total also raised its oil production growth target to 7 percent in 2018 from 6 percent previously, expecting a strong boost from the start-up of production in Angola’s Kaombo North, Nigeria’s Egina and Ichthys LNG in Australia.
Total said its cost savings measures were on track to surpass the $4 billion target, to reach $4.2 billion over the 2014-2018 period. (Reporting by Bate Felix; Editing by Sudip Kar-Gupta)