PARIS, January 28: French oil group Total SA on Wednesday said its 1997 net income had increased by 35 per cent to 7.6 billion francs ($1.3 billion), in line with market expectations, to an all-time record high beating a 1991 record of 5.8 billion francs established during the Gulf War when oil prices were high.The company said its preliminary operating income was up by 33 per cent to 13.6 billion francs. Despite a lower oil price, Total said it was increasing its investment budget to 21.8 billion francs for 1998 from 19.6 billion francs.
Earnings per share were up by 32 per cent to 31 francs. Finance director Robert Castaigne said the dividend was likely to be increased but the amount would be decided by the supervisory board meeting of March.
The group said return on equity rose to 12.7 per cent from 10.3 per cent.
The group gave no profit forecast.
``The first few weeks of 1998 were marked by a decrease in the Brent crude oil price to about $15 per barrel and by sustained levels for the dollarand European refining margins,'' it said.
``Over the past few years, Total has substantially improved its resistance to lower crude prices and refining margins, and in 1998, given the strong growth in oil and gas production outside the Middle East as well as productivity gains in all segments, the group should reinforce its competitive position in a volatile environment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
