21 January 2016, Lagos – French energy company, Total expects a drop in last year’s results but does not plan to cut jobs as peer British Petroleum has done to weather low oil prices, its Chief Executive, Patrick Pouyanne, said this during an interview with reporters.
According to Reuters, he said the group had the financial capacity to weather low oil prices, adding that Total like its peers was being hit by the fall in crude prices and that the company expected its results to drop by 20 per cent.
A Total spokesman said Pouyanne was referring to the company’s full-year 2015 results, which will be presented on February 11.
“We are resisting, but we are taking a hit,” he said.
“We have the financial capacity to withstand the price volatility in crude. We know that in commodities, there are cycles. Yes, this cycle is very violent, down 20 per cent in less than a month, 60 per cent in a year.”
Asked if Total would cut jobs, Pouyanne said: “No. We are used to these cycles, and jobs cannot be the adjustable variable because I’ll need these workers when the price goes back up, and it will go back up someday. I don’t know when.”
British energy company BP said last week that it planned to slash five per cent of its global workforce, about 4,000 jobs.
Pouyanne said Total had decided instead not to replace all retiring staff and to hire fewer people.
Total shares were up 2.1 per cent, boosting France’s blue-chip CAC 40 index and tracking the sector index, which was also up by more than per cent.
- The Nation