TOTALENERGIES SE Regulatory News:
Change Change
2Q20 vs 2Q19 1H20 vs 1H19
Oil price - Brent ($/b) 29.6 -57% 40.1 -39%
European gas price - NBP ($/Mbtu) 1.7 -59% 2.4 -54%
Adjusted net income (Group share)(1)
- in billions of dollars (B$) 0.13 -96% 1.91 -66%
- in dollars per share 0.02 -98% 0.68 -67%
DACF(1) (B$) 3.6 -49% 8.2 -41%
Cash Flow from operations (B$) 3.5 -44% 4.8 -52%
Net income (Group share) of -8.4 B$ in 2Q20, considering the
exceptional asset impairments of 8.1 B$(2)
Net-debt-to-capital ratio of 23.6% (excl.
leases impact) at June 30, 2020
Hydrocarbon production of 2,846 kboe/d in 2Q20, a decrease of
4% compared to 2Q19
Second 2020 interim dividend set at 0.66
EUR/share
Total's (Paris:FP) (LSE:TTA) (NYSE:TOT) Board of Directors met on July 29, 2020, under the chairmanship of CEO Patrick Pouyanné to approve the Group's second quarter 2020 financial statements. On this occasion, Patrick Pouyanné said:
<< During the second quarter, the Group faced exceptional circumstances: the COVID-19 health crisis with its impact on the global economy and the oil market crisis with Brent falling sharply to 30 $/b on average, gas prices dropping to historic lows and refining margins collapsing due to weak demand.
OPEC+ production restraint, however, has contributed to the market recovery since June, with an average Brent price above 40 $/b. The discipline with which the countries implemented the quotas reduced the Group's production by close to 100 kboe/d in the second quarter to 2.85 Mboe/d, and the Group now anticipates full-year production in the range of 2.9-2.95 Mboe/d in 2020.
Due to the significant slowdown of the European economy during the lockdown, the Group's retail networks observed an average decrease in petroleum products demand on the order of 30% during the quarter, and the utilization rate at its European refineries fell to around 60%. However, June saw a rebound of activity in Europe to 90% of pre-crisis levels for the retail networks and 97% for its gas and electricity marketing business.
In this historically difficult context, the Group demonstrates its resilience, reporting $3.6 billion of cash flow, positive adjusted net income and a level of gearing under control. These results are driven in particular by the outperformance of trading activities, once again demonstrating the relevance of Total's integrated model, and by the effectiveness of the action plan put in place from the start of the crisis, notably the discipline on spend.
Taking into account this resilience, the Board of Directors maintains the second interim dividend at EUR0.66 per share and reaffirms its sustainability in a 40 $/b Brent environment.
This quarter shows once again the quality of the Group's portfolio with a breakeven below 25 $/b, benefiting from the strategy to focus on assets with low production costs, notably in the Middle East. Active portfolio management continues with the sale of non-operated assets in Gabon and the Lindsey refinery in the United Kingdom.
In the midst of these short-term challenges, the Group is resolutely implementing its new climate ambition, announced on May 5, 2020 with the entry into a giant offshore wind project in the North Sea as well as the acquisition in Spain of a portfolio of 2.5 million residential gas and electricity customers plus electricity generation capacity. Investments in low-carbon electricity will be close to 2 B$ and account for nearly 15% of Capex in 2020. In line with this ambition, the Group reviewed the assets that could have been qualified as "stranded assets". The only assets concerned are the Canadian oil sands projects and the Board of Directors has decided to impair these assets in Canada for $7 billion(2) .>>
Highlights(3)
-- New Climate Ambition to achieve carbon neutrality by 2050
-- Joined the "Coalition for the Energy of the Future" with 10 major
partners to accelerate the energy transition of transportation and
logistics
-- Joined the "Getting to Zero Coalition" to contribute to the shipping
industry's decarbonization
-- Investment decision for the Northern Lights project in Norway for the
transport and storage of CO2
-- Signed the external financing agreement for the Mozambique LNG project
for $14.9 billion, the largest project financing in Africa
-- Extension of the LNG supply contract with Sonatrach for 2 Mt/y
-- Agreement with SSE Renewables to acquire a 51% stake in the 1,140 MW
offshore wind project in the Scottish North Sea
-- Acquisition of EDP's portfolio of 2.5 million residential customers and
two natural gas-fired combined-cycle power plants, with a combined
capacity of nearly 850 megawatts
-- Started up the second FPSO on the deep-offshore Iara field in Brazil
-- Discovery of Bashrush gas field in Egypt on North El Hammad permit
-- Third discovery (Kwaskwasi) on block 58 in Surinam
-- Sale of the portfolio of mature and non-operated assets in Gabon
-- Sale of the Lindsey refinery in the United Kingdom
-- Creation of a 50:50 JV with IndianOil to manufacture and market
high-quality bitumen derivatives
-- Adoption by the Group of statutes to become a European Company
Key figures(4)
In millions of
dollars, except
effective tax
rate, earnings
2Q20 per share and 1H20
vs number of vs
2Q20 1Q20 2Q19 2Q19 shares 1H20 1H19 1H19
Adjusted net
operating income
from business
821 2,300 3,589 -77% segments 3,121 7,002 -55%
Exploration &
(209) 703 2,022 ns Production 494 3,744 -87%
Integrated Gas,
Renewables &
326 913 429 -24% Power 1,239 1,021 +21%
Refining &
575 382 715 -20% Chemicals 957 1,471 -35%
Marketing &
129 302 423 -70% Services 431 766 -44%
Contribution of
equity
affiliates to
adjusted net
11 658 457 -98% income 669 1,071 -38%
Group effective
-6.8% 30.0% 33.0% tax rate(5) 24.3% 36.9%
Adjusted net
income (Group
126 1,781 2,887 -96% share) 1,907 5,646 -66%
Adjusted
fully-diluted
earnings per
share
0.02 0.66 1.05 -98% (dollars)(6) 0.68 2.07 -67%
Adjusted
fully-diluted
earnings per
0.02 0.60 0.94 -98% share (euros)** 0.62 1.84 -66%
Fully-diluted
weighted-average
shares
2,598 2,601 2,625 -1% (millions) 2,598 2,622 -1%
Net income
(8,369) 34 2,756 ns (Group share) (8,335) 5,867 ns
Organic
2,201 2,523 3,028 -27% investments(7) 4,724 5,811 -19%
Net
721 1,102 402 +79% acquisitions(8) 1,823 709 x2.6
Net
2,922 3,625 3,430 -15% investments(9) 6,547 6,520 -
Operating cash
flow before
working capital
3,148 4,016 6,707 -53% changes(10) 7,164 12,740 -44%
Operating cash
flow before
working capital
changes w/o
financial
charges
3,647 4,528 7,208 -49% (DACF)(11) 8,175 13,744 -41%
Cash flow from
3,479 1,299 6,251 -44% operations 4,778 9,880 -52%
From 2019, data take into account the impact of the new rule IFRS16 "Leases", effective January 1, 2019.
* Average EUR-$ exchange rate: 1.1014 in the second quarter 2020 and 1.1020 in the first half 2020.
Key figures of environment and Group production
(MORE TO FOLLOW) Dow Jones Newswires
07-30-20 0830ET
