Total Portrays Resilience in Third Quarter Results

Total SE’s Board of Directors met on October 29, 2020, under the chairmanship of CEO Patrick Pouyanné to approve the Group’s third quarter 2020 financial statements.

On this occasion, Patrick Pouyanné said:

“After a second quarter in which the Group faced exceptional circumstances with oil prices falling below $20/b and a very strong slowdown of global activity linked to the health crisis, the Group benefited during the third quarter from a more favorable environment, with oil prices above $40/b thanks to strong OPEC+ discipline as well as the demand recovery for petroleum products for road transportation. However, the environment was mixed with low natural gas prices and severely depressed refining margins due to excess production capacity relative to demand and high inventories.

In this context, the Group is once again demonstrating its resilience thanks to its integrated model, by generating cash flow (DACF) of more than $4 billion, conforming to forecasts with a $40/b crude price, and reducing gearing to 22% given its investment and cost discipline. Adjusted net income was close to $850 million, and the organic cash breakeven remained below $25/b.

Upstream carries the Group’s results with adjusted net operating income of $1.1 billion, notably thanks to low production costs of $5/boe, despite lower LNG prices and lower production. Given the strict discipline with which OPEC+ has implemented quotas and the lack of production in Libya until October 2020, the Group now anticipates full-year 2020 production below 2.9 Mboe/d.

During the quarter, the Group accelerated the implementation of its renewable energy strategy, notably by acquiring a 3.3 GW solar portfolio in Spain and taking positions in floating offshore wind in South Korea and France. In addition to the gross renewable installed capacity of 5.1 GW at the end of the third quarter, the Group is developing a portfolio of 19 GW of projects, of which 9 GW already benefit from long-term power purchase agreements.

Confident in the fundamentals of the Group, the Board of Directors confirmed the third interim dividend payment maintained at €0.66 per share and reaffirmed that the dividend is supported in a context of $40/b, particularly in view of the results this quarter.”

Key Highlights

Sustainability

  • Recognition of the Group as a “LEAD” company by the United Nations Global Compact
  • New Biodiversity Ambition with enhanced commitments
  • Signature as co-founder of the “Sea Cargo Charter” to provide transparent and standard reporting of greenhouse gas emissions related to maritime transport activities
  • First publication of the “Sustainability Accounting Standards Board” report (Exploration & Production standard)

Renewables and electricity

  • Acquired a 3.3 GW portfolio of solar projects in Spain, bringing the total capacity to more than 5 GW of solar projects in development in the country
  • Decision to cover the entire electricity consumption of the Group’s industrial sites in Europe by 2025 with green electricity produced by its Spanish solar sites, through a 3 GW “corporate PPA”
  • Finalization by SunPower of the Maxeon Solar Technologies spin-off in the US
  • Strengthened partnership with Adani in solar, with expansion of portfolio to 2.3 GW in India
  • Agreement with Macquarie to develop 2 GW portfolio of floating offshore wind in South Korea
  • Acquired 20% stake in the Eolmed 30 MW floating offshore wind project in the Mediterranean
  • Creation of Automotive Cells Company JV with Groupe PSA to develop and manufacture batteries in Europe for electric vehicles
  • Acquired Blue Point London, operator of London’s largest charging network with 1,600 electric vehicle charging points

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