French oil giant Total unveiled record 2006 profits today after a smaller-than-expected decline in the fourth quarter, lifting its shares but sparking renewed calls for a windfall tax.
The fourth-biggest western oil major announced a 15 per cent rise in its 2006 dividend and predicted, unlike most of its industry peers, increased oil and gas output for the next four years as several key fields in Angola and Qatar start producing.
Any cash left after investments and the dividend payment will be used for share buybacks, Total said, helping boost its shares 1.9 per cent to €53.50 by 11.30am.
Total said 2006 adjusted net profit rose 5 per cent to €12.59 billion after stripping out one-off items and inventory swings, with sales up to €153.8 billion.
The increase in annual profit came despite lower production, higher costs and exploration spending, and weaker oil prices at the end of 2006, which cut adjusted fourth-quarter net income by 10 per cent to €2.74 billion euros.
Total's result compares with an 11 per cent rise in quarterly net profit at Royal Dutch Shell, a 12 per cent drop at BP, and a 4.3 per cent dip at Exxon Mobil.
Total's net profit - worth over $500 a second - were a boon to investors but immediately became a slippery issue for its new chief executive, who has to steer France's biggest group through an election season dominated by debates on wealth.
Christophe de Margerie (55) was promoted to the top job on the eve of the results, succeeding Thierry Desmarest who defended Total's earnings at a joint presentation today.
"Yes we make €12 billion, but I'd like to remind you that we pay €12 to €13 billion in taxes worldwide, and that we only generate 5 per cent of our profits on French soil," said Mr Desmarest, who will remain non-executive chairman of the firm.
Total said investment would rise 14 per cent to $16 billion in 2007, three quarters for exploration and production.