French oil major Total said second-quarter underlying net profit soared thanks to higher oil prices, strong production and a recovery in refining, which also boosted smaller Portuguese rival Galp. Echoing a trend across the sector, Total reported a strong rise in output, up 8 percent in the quarter compared with the same period last year, driven by soaring gas production as crude output stayed flat.
Total said second-quarter net income, excluding one-offs and unrealised gains or losses related to changes in the value of fuel inventories, jumped 72 percent to 2.96 billion euros ($3.9 billion), ahead of an average forecast of 2.69 billion from a Reuters poll of seven analysts.
Total shares rose 1.7 percent to 38.99 euros at 0917 GMT, outperforming a flat STOXX Europe 600 Oil and Gas index. In dollar terms, the underlying result was up 60 percent, against a 34 percent rise in profits calculated on a similar basis at Royal Dutch Shell, Europe's largest oil company by market value, and an 85 percent rise at Texas-based Exxon Mobil , the industry leader.
Total, Europe's largest refiner, was also boosted by a recovery in refining margins, with profits in the crude processing division almost trebling. Higher refining margins also buoyed Portuguese oil company Galp Energia, which on Friday posted a 110 percent rise in second-quarter net profit, adjusted to reflect changes in the company's stocks of crude, of 109 million euros ($142.6 million).
The year-on-year rise was exacerbated by a drop in refining volumes in the same period last year due to a fire at Galp's Sines plant. Analysts polled by Reuters had forecast, on average, an adjusted net profit of 76 million euros. The company's shares dropped 0.6 percent to 25.50 euros. Galp's refining margin jumped 118 percent from a year ago to $3.2 a barrel after a steep fall last year.
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