Total Strategy & Outlook Presentation
September 22 2016 - 9:20AM
Business Wire
Regulatory News:
Total (Paris:FP)(LSE:TTA)(NYSE:TOT):
Patrick Pouyanné, Chairman and CEO, will today present Total’s
Strategy & Outlook to the financial community. The presentation
slides and webcast are available on total.com.
Key messages of the presentation include:
Tackling Short Term Challenges
In an environment where oil and gas prices have fallen
significantly and remain volatile, Total is focused on being
excellent at everything it can control:
- Increasing Opex savings from $3 to $4
billion by 2018
- Delivering growth with Capex at a
sustainable level of $15 to $17 billion per year from 2017, $2
billion less than previous guidance due to further Capex discipline
and cost deflation
- Growing production by an average rate
of 5% per year from 2014 through to 2020 (rather than to 2019 in
previous guidance).
Results for 2015 and the first 6 months of 2016 demonstrate the
strength of the Group’s integrated business model and the progress
it is making to reduce its breakeven and deliver growth
projects.
Positioning Total Strongly for the Medium
Term
Total is managing its portfolio and allocating investment to
position itself for profitable medium term growth with the
following priorities:
- Lowering the breakeven of oil
portfolio, both Upstream and Downstream
- Expanding along the full gas value
chain
- Capitalizing on customer-focused
culture to grow its marketing and services positions
- Positioning in low carbon energy
business
And with the objective to be the most profitable European
integrated Major oil company.
Creating Shareholder Value
Total is focused on lowering its cash flow breakeven. In 2017,
cash flow from operations will cover Capex, including resource
renewal, and dividend cash-out at 55 $/b Brent. With continued
strong free cash flow growth thereafter, Total is committed to
deliver shareholder value and improve profitability with an
objective of ROE above 10% at 60 $/b Brent while maintaining a
strong balance sheet. The discounted scrip dividend will be ended
in 2017 if Brent is at 60 $/b. Excess cash flow will be allocated
in priority to lowering gearing and to buy back scrip shares.
In addition to Patrick Pouyanné’s presentation, Arnaud
Breuillac, President Exploration & Production, will present the
progress being made in Exploration & Production to improve
operational efficiency, reduce costs and deliver growth projects.
Philippe Sauquet, President Gas, Renewables & Power, will
present an overview of the new segment and its objectives.
Patrick Pouyanné and Patrick de La Chevardière, CFO, will answer
questions from the financial community at the end of the event.
* * * * *
About Total
Total is a global integrated energy producer and provider, a
leading international oil and gas company, and the world’s
second-ranked solar energy operator with SunPower. Our
96,000 employees are committed to better energy that is safer,
cleaner, more efficient, more innovative and accessible to as many
people as possible. As a responsible corporate citizen, we focus on
ensuring that our operations in more than 130 countries worldwide
consistently deliver economic, social and environmental benefits.
total.com
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms “Total” and “Total Group”
are sometimes used for convenience where general references are
made to TOTAL S.A. and/or its subsidiaries. Likewise, the words
“we”, “us” and “our” may also be used to refer to subsidiaries in
general or to those who work for them.This document may contain
forward-looking information and statements that are based on a
number of economic data and assumptions made in a given economic,
competitive and regulatory environment. They may prove to be
inaccurate in the future and are subject to a number of risk
factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any
obligation to update publicly any forward-looking information or
statement, objectives or trends contained in this document whether
as a result of new information, future events or otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160922005705/en/
TOTAL S.A.Mike SANGSTERNicolas FUMEXKim HOUSEGORomain
RICHEMONTTel. : + 44 (0)207 719 7962Fax : + 44 (0)207 719
7959orRobert HAMMOND (U.S.)Tel. : +1 713-483-5070Fax : +1
713-483-5629total.com
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