Energy company Total says profit slips in 2nd quarter as higher production offsets lower price

French energy giant Total SA says its net profit slid 4 percent in the second quarter as higher production helped offset a steep drop in the price of oil.

Total on Wednesday reported a net profit of $2.97 billion, down from $3.1 billion a year earlier. Underlying replacement cost profit, which strips out one-time items and changes in the value of inventories, fell 2 percent to $3.1 billion in the quarter.

Production rose 12 percent to nearly 2.3 million barrels of oil equivalent per day in the second quarter, as a new gas field in Russia came online, boosting output.

Total said it expects to exceed its full-year goal of cutting costs by $1.2 billion, and said it's on track to trim capital expenses to around $23 billion this year.