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Total rebrands itself

FRANCE FRANCE’S Total has become the latest oil com- those from marketing and services fell 30% to
pany to rebrand itself to reflect its transition away $332mn.
The vote on the name from crude. Full-2020 net profit was $4.06bn, marking a
will be a vote on the The company announced on February 9 decline of two thirds from the level in 2019. Total
strategy, Total’s CEO it would change its name to Total Energies, as slashed its capital spending by 26% to $13bn in
has said. it prepares to scale back in oil and expand in the year, and achieved $1.1bn in cost savings,
renewables. lowering its gas breakeven price to $26 per bar-
“By proposing this name change to share- rel of oil equivalent (boe). But it also suffered
holders, we’re also fundamentally asking them $10bn of impairment charges, the bulk of which
to approve this change in strategy,” CEO Patrick related to the write-down of its oil sands opera-
Pouyanne said in a statement. tions in Canada after revising its long-term price
The announcement was made after Total assumptions.
booked a $7.2bn loss in 2020 as a result of the Improved numbers quarter on quar-
oil price collapse. Its European peers BP, Royal ter were achieved thanks to a recovery in oil
Dutch Shell and Equinor unsurprisingly posted prices towards the end of 2020, largely thanks
similar very weak numbers for the year. to OPEC+’s actions and confidence about
Total’s fourth-quarter adjusted net profit COVID-19 vaccinations. Gas prices also soared
came in at $1.3bn, as all its business segments in Asia and Europe in December thanks to cold
suffered reduced earnings. Adjusted net operat- weather. But Total’s refining margins remained
ing profit slumped to $1.82bn, down 53% year thin, owing to weak demand and large invento-
on year, on the back of a halving in upstream ries. Cash flow from operations was somewhat
earnings to $1.07bn. This was the result of lower strong, at $5.67bn in the fourth quarter, down
prices and a 9% cut in Total’s production. 14% y/y but up 30% q/q.
The company’s earnings from integrated Total’s board has proposed a €0.66 ($0.80)/
gas, renewables and power income plunged share for Q4 2020, in line with the level in the
68% to $254mn, while refining and chemi- three previous quarters. The name change will
cals earnings slumped 71% to $170mn and be put to a vote on May 28. ™

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