Total beats profit forecasts on strong performance in refining, chemicals

By Bate Felix

PARIS, April 27 (Reuters) -- French energy company Total reported a better-than-expected net profit for the first quarter as high output and strong performance in refining and chemicals helped limit the impact of a prolonged fall in oil prices.

Net adjusted profit fell 37% to $1.6 billion but beat the $1.2 billion expected by analysts polled by Reuters.

Total's shares were up 1.4% at 0722 GMT.

Weak oil prices have hurt the industry, with US giant ExxonMobil this week losing its Standard & Poor's top credit rating for the first time in almost 70 years.

Total said hydrocarbons production rose by 4% to 2.479 MMbpd of oil equivalent compared with the same quarter last year, a level in the quarter last seen 10 years ago.

New production from its Angola LNG, Bolivian Incahuasi gas field and Kashagan oil field in Kazakhstan will enable Total to grow production at 4% this year, the company said.

Total said in its downstream segment, although refining margins were down compared with 2015, the business had held up well and remained strong at the beginning of the second quarter.

"Refining and chemicals improved its results compared to 2015 despite the decrease in refining margins to $35/ton, thanks to a record high utilization rate of 94% and favorable petrochemicals margins," Total CEO Patrick Pouyanne said in a statement.

The company proposed to maintain its dividend unchanged at 0.61 euros/share, payable through cash and a scrip scheme.

Like its peers hurt by prolonged low prices and market oversupply, Total said it was cutting costs and aimed to spend less than the $19 billion it had planned for investments in 2016.

It said it was on target to achieve planned savings of $900 million in 2016.

The company said it had the lowest technical cost among oil majors in the upstream division at $23/bbl of oil equivalent (boe) compared with peers at $26 to $44 boe.

Its upstream division generated a net operating income of $498 million in the first quarter.

Total said it aimed to reduce its cash break-even point to $40/bbl compared with $45 announced in February.