Total plans $5 billion in asset sales, second quarter net profit falls
French energy giant Total <TOTF.PA> said it will sell assets worth around $ 5 billion mostly from its upstream exploration and production business as it seeks to focus on low breakeven projects that can withstand low oil prices.
The company reported a 19% drop in adjusted net profit in the second quarter at 2.9 billion compared with the same period last year which it attributed to a combination of unfavorable market factors.
These include low oil prices compared with the second quarter of 2018, down 7%, a sharp fall in gas prices, while its refining margin tumbled.
The company, which has carried out a spree of acquisitions and expansion particularly in the gas and electricity market under Pouyanne, said it was preparing its future by focusing on its core strength in the gas segment and deep offshore.
The strategy would be complemented by the divestment of assets that only break even at high oil and gas prices, such as the recent sale of mature assets in the UK North Sea, Total said in a statement.
Total said the global oil environment remains volatile at the start of the third quarter with uncertainty about demand growth.
Aug. 7, 2019