France’s Total reported improved fourth quarter results on Thursday but the company’s full year income dropped from the prior year.

Total recorded a fourth quarter adjusted net income climbed 16 percent year-over-year to $2.4 billion, or $0.96 per share.

Full year adjusted net income declined 21 percent year-over-year to $8.3 billion, or $3.38 per share.

Fourth quarter net income rose to $584 million compared to a $1.62 billion loss in the year-ago quarter.

Full year net income rose 22 percent year-over-year to $6.19 billion in 2016.

Total’s upstream segment saw its adjust net operating income surge to $1.13 billion in the fourth quarter of 2016, up from $748 million in the prior-year quarter.

Full year upstream segment adjusted net operating income fell to $3.63 billion, a 24 percent year-over-year decline.

The company’s refining and chemicals segment saw fourth quarter adjusted net operating income jump 13 percent year-over-year to $1.13 billion.

Full year refining and chemicals adjusted net operating income slid down to $4.2 billion compared to $4.88 billion in 2015.

Total’s marketing and services segment saw its fourth quarter net adjusted operating income drop to $411 million, a 22 percent year-over-year decline.

Full year marketing and services net adjusted operating income ticked down 7 percent from the prior year to $1.58 billion in 2016.

Fourth quarter sales rose 12 percent year-over-year to $42.27 billion while full year sales slid down to $149.74 billion, a 9 percent decline from 2015.

Fourth quarter cash flows from operations jumped to $4.75 billion, a 45 percent year-over-year increase.

Full year cash flows from operations dipped to $16.52 billion for 2016, down from $19.94 billion in 2015.

Total’s fourth quarter production climbed nearly 5 percent year-over-year to 2.462 million barrels of oil equivalent per day.

Full year 2016 production rose to 2.452 million barrels of oil equivalent per day, a 4.5 percent gain from the prior year.

Total said that, despite OPEC and non-OPEC production deals, the company expects that crude prices are “likely to remain volatile.”

In light of high global crude inventory levels and volatile prices, Total said it’s continuing to cut costs in order to achieve $3.5 billion in cost savings in 2017.

The company is also aiming to reduce production costs down to $5.5 per barrel of oil equivalent this year.

The company said that it expects to spend between $16 billion and $17 billion on investment in 2017, including resource acquisitions.

The company expects cash flow from operations will cover its investments and the cash portion of its dividends with crude prices at $50 per barrel.

Total added that its breakeven price will continue to decline in 2017 and is expected to fall to less than $40 per barrel pre-dividend.


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