Total proposes name change to shareholders

On this occasion, Patrick Pouyanne´ said:

The Group’s 4Q20 results rebounded from the previous quarter in a context where oil prices stabilised above US$40/bbl, thanks to strong OPEC+ discipline, and where gas prices rose sharply in Europe and Asia, but where re-fining margins remained depressed, still affected by low demand and high inventories. In this context, the Group demonstrates its ability to benefit from an overall more favourable environment with adjusted net income up by more than 50% to US$1.3 billion and cash flow (DACF) of US$4.9 billion.

Total faced two major crises in 2020: the COVID-19 pandemic that severely affected global energy demand, and the oil crisis that drove the Brent price below US$20/bbl in 2Q20. In this particularly difficult context, the Group implemented an immediate action plan and proved its resilience thanks to the quality of its portfolio (production cost of US$5.1/boe, the lowest among its peers) and its integrated model with cash flow (DACF) generation of nearly US$18 billion. It posted adjusted net income of US$4.1 billion and, thanks to strong discipline on investments (US$13 billion, down 26%) and costs (US$1.1 billion in savings), the organic cash breakeven was US$26/bbl. Consistent with its climate ambition, the Group recorded exceptional asset impairments of US$10 billion, notably on Canadian oilsands assets, most of which were recorded in its accounts at the end of June, leading to an IFRS loss for the year of US$7.2 billion.

2020 represents a pivoting year for the Group’s strategy with the announcement of its ambition to get to net zero, together with society. The Group affirms its plan to transform itself into a broad energy company to meet the dual challenge of the energy transition: more energy, less emissions. Thus, the Group’s profile will be transformed over the 2020 - 2030 decade: the growth of energy production will be based on two pillars, LNG and renewables & electricity, while oil products are expecting to fall from 55% to 30% of sales. To anchor this transformation, the Group will propose to its shareholders at the Annual General Meeting on 28 May 2021, changing its name to TotalEnergies. They will hence have the opportunity to endorse this strategy and the underlying ambition to transition to carbon neutrality.

In 2020, Total secured its investments in Renewables & Electricity (US$2 billion) and accelerated the implementation of its strategy to grow renewables, adding 10 GW to its portfolio. With the acquisition at the start of 2021 of a 20% stake in Adani Green Energy Limited (AGEL), the largest solar developer in the world, and of portfolios of projects in the US, the Group now has a portfolio of gross installed capacity, under construction and in development of 35 GW by 2025 with more than 20 GW already benefiting from long-term power purchase agreements.

Total preserves its financial strength with a gearing of 21.7% at the end of 2020. Confident in the Group’s fundamentals, the Board of Directors confirms its policy of supporting the dividend through economic cycles. Therefore, it will propose at the Annual General Meeting of Shareholders on 28 May 2021, the distribution of a final dividend of €0.66 per share, equal to the previous three quarters, and set the dividend for 2020 at €2.64 per share.”

Highlights

Sustainability

• Strengthened the Group’s commitment to reduce methane emissions with initiative OGMP 2.0.
• Withdrew from the American Petroleum Institute.
• Total once again selected in 2020 in the Dow Jones Sustainability Indices.
• Renewables and electricity.

Renewables

• Acquired in India a 20% minority interest in Adani Green Energy Limited (AGEL), one of the largest solar developers in the world.
• Acquired Fonroche Biogaz in France, making Total a leader in renewable gas production in France.
• Agreed with 174 Power Global, a subsidiary of Hanwha, to develop a portfolio of 1.6 GW of solar and energy storage projects in the US.
• Acquired a 2.2 GW portfolio of solar and energy storage projects in Texas, US.
• Developing one of the largest sites in France for the production of green hydrogen based 100% on renewable electricity with Engie.
• Issued €3 billion of hybrid bonds dedicated to financing the strategy to grow renewables.

Electricity

• Acquired portfolio of 2 million residential customers and 2 CCGT with cumulative capacity of 850 MW from Energi´as de Portugal in Spain.
• Won the City of Paris (France) concession tender to operate 2300 charge points of the Be´lib’ network.
• Acquired Charging Solutions to become operator of 2000 charge point network in Germany.

LNG

• Finalised 16.6% participation in Energia Costa Azul LNG project on the Pacific coast of Mexico.
• Delivered first carbon neutral LNG cargo to CNOOC (China).
• Completed first LNG bunkering for CMA CGM in Port of Rotterdam, the Netherlands.
• Chartered four new LNG-powered Aframax vessels to reduce maritime transport emissions.

Upstream

• Fourth hydrocarbon discovery on Block 58 in Suriname.
• Second gas and condensate discovery on Block 11B/12B in South Africa.
• Entered new offshore exploration permit as operator in Egypt.
• Sold Group’s 10% interest in onshore OML 17 block in Nigeria.

Hydrocarbon production for LNG in the fourth quarter decreased by 15% compared to a year ago, notably due to the shutdown of Snøhvit LNG following a fire at the end of September 2020.

Total LNG sales increased by 12% in 2020 compared to 2019 thanks to the start-up of three trains at Cameron LNG in the US, the ramp-up of Yamal LNG in Russia and Ichthys LNG in Australia, and the increase in trading activities.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/09022021/total-proposes-name-change-to-shareholders/