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Paris - French oil group Total reported on Wednesday it suffered a profit and production setback in the second quarter, but said it expected output to rebound despite uncertainty over the impact of sanctions on Russia.
The key quarterly net profit on a current cost basis, excluding the effects of changes in inventory values, fell by 12.0% to $3.15bn.
The headline net profit fell by 8.0% to $3.10bn, and sales rose by 2.0% to $62.56bn from the comparable figures last year.
The results fell short of analysts' expectations, and the price of Total shares fell by nearly 2.83% to €50.74 in initial trading.
The group blamed weak refining conditions in Europe and a fall of output, but expressed confidence that production would rise following the launch of a project in June for a giant offshore field called CLOV off Argentina.
Output was also hit by the ending of a production licence in Abu Dhabi, maintenance operations, and worsening unrest in Libya.
Production of hydrocarbons in the quarter fell by 10.0% to 2.054 million barrels of oil equivalent per day, but finance director Patrick de La Chevardiere told a telephone press conference that this was "an absolute low point".
However, the group had not yet estimated the possible impact of new economic sanctions against Russia decided by the United States and European Union on Tuesday, he said.
"So far we have not stopped our operations on the site of the Yamal project," he said referring to a giant plant for liquefying natural gas to be built in Siberia.
Total has an interest of 20%, and its partners Novatek of Russia have 60% and Chinese oil group CNPC 20%.
"As partners, we have decided to assess the situation at the end of August," he said.
Total has increased its stake in Novatek from 17.0% to slightly more than 18.0% at a cost of about $270m.
