UPDATE 1-Total hits costs target early as oil rebound lifts profit

Thu Jul 28, 2016 6:02am EDT
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* Says reached $900 million in savings so far in 2016

* Sales fall 17 percent year-on-year $37.2 bln

* Adjusted net income down 30 pct year-on-year to $2.2 bln

* Shares among top gainers, up 1.5 percent (Adds details, Shell, share price)

By Bate Felix

PARIS, July 28 (Reuters) - French oil and gas major Total said on Thursday it had met its cost saving target ahead of schedule as increased output and an oil price rebound produced a better-than-expected rise in second quarter net profit.

Total said it had made $900 million in savings so far this year, which on top of $1.5 billon last year brings it to its target of $2.4 billion for the end of 2016 and it now hopes to save more by the year-end.

Chief Executive Officer Patrick Pouyanne said oil prices remained volatile, but Total had gained from a recovery in Brent crude from the start of the year when it went below $28 per barrel to average $46 per barrel in the second quarter.

Brent was down 10 cents at $43.37 per barrel by 0845 GMT on Thursday, steadying just above three-month lows on oversupply concerns.   Continued...