Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Total net profits dive 96% but less than feared, keeps dividend

    Total net profits dive 96% but less than feared, keeps dividend

    July 31, 2020
    Share
    Facebook Twitter LinkedIn WhatsApp
    Total plans biggest exploration focusing on commercial oil & gas
    *Total.

    Paris — French energy major Total reported a 96% fall in second-quarter net profit to $126 million, exceeding expectations for a sharp loss, and said it would maintain its dividend.

    All major energy companies have been hard hit by the impact of COVID-19 lockdowns and a collapse in fuel demand, but some have managed to limit the damage as their trading divisions have capitalised on exceptional market volatility.

    The market had expected Total to report a net loss for the quarter of around $520 million, the mean estimate of 7 analysts, based on Refinitiv data showed.

    Total said its cash flow from operations fell 44% to $3.47 billion, but its adjusted net income was positive and its gearing was under control.

    Chairman and Chief Executive Officer Patrick Pouyanne said the cash flow, and reduced spending, would enable Total to maintain a dividend of 0.66 euros ($0.7781) per share, a sustainable level with Brent crude at $40 per barrel, just below its current price.

    “These results are driven in particular by the outperformance of trading activities, once again demonstrating the relevance of Total’s integrated model,” Pouyanne said in a statement.

    Output cuts by the Organization of the Petroleum Exporting Countries and other producers, combined with a pickup in demand, contributed to a rally in the oil market since June.

    Total says launched calls for tenders for Uganda oil project

    Still the outlook is uncertain as an upsurge in coronavirus infections raises the likelihood of new lockdown restrictions.

    “The oil environment, however, remains volatile, given the uncertainty around the extent and speed of the global economic recovery post-COVID-19,” the company said.

    Total’s oil and gas production during the quarter fell 4% to 2.85 million barrels of oil equivalent per day (mboepd).

    It trimmed its output forecast for the year to around 2.9-2.95 mboepd from 2.95-3 mboepd.

    It also reduced its planned 2020 investments to below $14 billion from $15 billion previously.

    Total’s shares were flat by 0714 GMT after opening down 0.8%.

    Total said the fall in oil prices in the second quarter would have an impact on long-term liquefied natural gas (LNG) contract prices in the second half of 2020 and it expected significant deferred LNG liftings in the third quarter.

    On Wednesday, the group said it would take an $8 billon impairment on the value of its assets, mainly in energy-intensive Canadian oil sands projects.

    Follow us on twitter

    • Reuters

    Related News

    Activists demand constitutional review to tackle oil pollution

    OPL 245: Shettima, Jonathan, Makinde back transparency in oil sector

    Indonesia names nine more suspects in Pertamina graft probe

    E-book
    Resilience Exhibition

    Latest News

    AFRICA-FX-Nigerian and Ghanaian currencies among those seen stable

    July 11, 2025

    ‘Be stewards of public trust, due process, and effective policy implementation’

    July 11, 2025

    Activists demand constitutional review to tackle oil pollution

    July 11, 2025

    OPL 245: Shettima, Jonathan, Makinde back transparency in oil sector

    July 11, 2025

    Indonesia names nine more suspects in Pertamina graft probe

    July 11, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.