European oil majors hit by weak dollar, Libya
French and Italian oil majors Total SA
Paris-based Total said second-quarter net income, excluding one-offs and non-cash gains due to changes in the value of fuel inventories, fell 6 percent compared to the same period last year, to 2.8 billion euros, broadly in line with forecasts.
Eni said profits calculated on the same basis fell 14 percent to 1.67 billion euros as Libyan outages pushed production down 12 percent to 1.49 million barrels of oil equivalent per day (boepd).
Analysts had on average been expecting a result of 1.653 billion euros, according to Thomson Reuters I/B/E/S Estimates.
Total lost around 2 percent of output due to the Libyan conflict with overall production averaging 2.31 million boepd. Total, Europe's largest refiner by capacity, also reported lower profits from its refining division due to weak crude processing margins.
A 13 percent weakening in the dollar hit both companies as the price of the crude they produce is denominated in the U.S. currency.
In dollar terms, Total's underlying net income rose 7 percent, while Eni's fell just 2 percent.
By comparison, Europe's largest oil company by market value, Royal Dutch Shell Plc
Eni said it could quickly restart output at its Libyan fields when the fighting there ended, as no damage had been reported to its facilities -- echoing comments on Thursday from Spanish rival Repsol
Total shares traded down 1.3 percent at 0705 GMT, in line with the STOXX Europe 600 Oil and Gas index <.SXEP>. Eni shares traded down 1.9 percent.
(Writing by Tom Bergin; Editing by David Holmes)
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