Total sees Q3 profit slump by half amid weak solar market
Total has reported an almost 50% drop in Q3 earnings from its new gas, renewables and power unit. The French utility blamed "weakness in the solar market" for adjusted net earnings of $97m at the unit and an 18% slump in adjusted net operating profit in the first nine months of the year to $253m. Cashflow from Q3 operations rose to $325m from $24m YoY, while investments dropped to $99m from $1.1bn.

The new Gas, Renewables & Power segment of French oil and gas major Total SA (EPA:FP) has experienced a 49% year-on-year drop in third-quarter adjusted net operating profit to USD 97 million (EUR 84m).

The result was in line with the second quarter. Investments amounted to USD 99 million, compared to USD 1.1 billion a year earlier and USD 77 million in April-June 2017. Cash flow from operations amounted to USD 325 million, up from USD 24 million in the same period of 2016. Last quarter the segment’s cash flow from operations was negative at USD 114 million.

For the first nine months of the year, adjusted net operating profit decreased by 18% to USD 253 million because of weakness in the solar market, the company says in the financial report. Total is the majority owner of US solar panel manufacturer SunPower Corp (NASDAQ:SPWR).

The particular segment encompasses downstream gas activities, New Energies activities excluding biotechnologies, as well as a new Innovation & Energy Efficiency division.

(USD 1.0 = EUR 0.863)

Choose your newsletter by Renewables Now. Join for free!