Patrick Pouyanné, Chairman & CEO of Total, has addressed the Group’s employees in order to mobilise them in the face of the challenges ahead.
In his address, Pouyanné recalled the resilience that the Group’s teams demonstrated during the 2015 – 2016 oil crisis as well as the two pillars of the Group’s strategy which are the organic pre-dividend breakeven of less than US$25/bbl and the low gearing to face this high volatility.
In a context of oil prices on the order of US$30/bbl, he announced an action plan to be implemented immediately based on the following three axes:
- Organic CAPEX cuts of more than US$3 billion, i.e. more than 20%, reducing 2020 net investments to less than US$15 billion. These savings are mainly in the form of short-cycle flexible CAPEX, which can be arbitrated contractually over a very short time period.
- US$800 million of savings in 2020 on operating costs compared to 2019, instead of the US$300 million previously announced.
- Suspension of the buyback program – the company announced a US$2 billion buyback for 2020 in a US$60/bbl environment; it bought back US$550 million in the first two months.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/24032020/total-announces-immediate-action-plan/