Regulatory News:
Patrick Pouyanné, Chairman and CEO, will present Total's
(Paris:FP) (LSE:TTA) (NYSE:TOT) Strategy & Outlook in Paris
today. The webcast of the presentation in English is available on
total.com.
Key messages of the presentation include:
Increasing energy while decreasing carbon
Growing energy demand and getting to Net Zero are the two global
trends underpinning the Total Energy Outlook and thus the
evolutions of the energy markets that Total integrates into its
strategy.
Total's strategy aims to transform itself into a broad energy
company by profitably growing energy production from LNG and
electricity, the two fastest growing energy markets, aiming to
create long term value for its shareholders. In the next decade,
Total's energy production will grow by one third, roughly from 3 to
4 Mboe/d, half from LNG, half from electricity, mainly from
renewables. The Group will progressively scale up profitable
investments in renewables and electricity from 2 to 3 B$ per year
representing more than 20% of capital investments.
Total confirms its ambition to get to Net Zero by 2050 together
with society for its global business (Scope 1+2+3). On its way to
carbon neutrality in Europe by 2050, Total will reduce the Scope 3
emissions of its European customers by 30%, in absolute value, by
2030. This decrease in Europe allows Total to take the new
commitment to reduce the absolute level of the worldwide Scope 3
emissions of its customers in 2030 compared to 2015. In the next
decade, oil products sales from Total will diminish by almost 30%
and Total's sales mix will become 30% oil products, 5% biofuels,
50% gases, 15% electrons.
Increasing energy in gases...
Total LNG sales will reach 50 Mt/y by 2025 and will double over
2020-30, creating value from scale, arbitrage and integration along
the value chain. Cash-flow from integrated LNG business shall grow
by 40% to more than 4 B$ in 2025 at 50$/b. Decarbonizing natural
gas with biogas and hydrogen as well as continuing to reduce
methane emissions will contribute to Total's climate ambition.
... in electrons ...
Developing an integrated business model from production to sales
through storage and trading, Total is targeting 50 TWh of net
production and 80 TWh of sales to 9 million customers by 2025.
Building on the strong dynamic in 2020, Total will grow as a world
leader in renewables, raising its objective to 35 GW gross capacity
in 2025 (70% already in portfolio), and has the ambition to add
around 10 GW per year beyond, as it managed to do in 2020.
Renewables and electricity are expected to deliver a predictable
cash flow of more than 1.5 B$ per year by 2025.
... and privileging value over volume in oil
Total will focus on low cost oil projects, privileging value
over volume and develop its portfolio of oil projects, all with
profitability above 15% at 50$/b, while ensuring consistency for
Capex allocation with climate ambition.
Adapting energy sales to market evolution and engaging in the
mobility revolution
As recently demonstrated with the Lindsey refinery divestment
and the transformation of Grandpuits refinery into a zero oil
platform, Total will adapt refining capacity and sales to demand,
particularly in Europe. In the same time, it will further increase
its biofuels productions and sales as demand for such renewable
products is supported by policies aiming to get to Net Zero.
Renewable diesel production is expected to reach more than 2 Mt/y
by 2025.
The Group is also committing more than 1 B$ over the next ten
years to the e-mobility revolution by investing in battery
manufacturing and EV charging with a target of 150,000 charge
points by 2025.
Resilience & Growth underpinning compelling investment
case
In the current uncertain environment, Total remains focused on
what it controls and specifically on the pillars that enable the
Group to resist the crisis: HSE, delivery, costs and cash, with a
view to continuously improve its organic breakeven below 25 $/boe.
Discipline and flexibility will be maintained on capital
investments with 13-16 B$ over 2022-25 assuming an oil price
between 50 and 60 $/b. Considering the short-term uncertainty and
low price environment, capital investment for 2021 should be under
12 B$. Cost reduction efforts will be accelerated and increased to
2 B$ by 2023.
Accelerating its shift toward low carbon businesses while
growing its Upstream production by around 2% per year between 2019
and 2025, mainly over 2022-25, the Group confirms a cash flow
growth of 5 B$ by 2025 and a ROE greater than 10% in a 50 $/b
environment.
Based on this outlook and given the resilience shown by the
Group, the Board reaffirms its confidence in the Group's
fundamentals and confirms that the dividend is supported at 40 $/b.
Beyond serving the dividend, priority will be given to bringing
gearing below 20%. Furthermore, the Board is convinced that Total,
with its strategy to become a multi-energy company while offering a
high yield dividend, is a compelling investment case supporting
stock rerating.
* * * * *
Following the Strategy & Outlook presentation, there will be
a series of thematic presentations made by members of the Executive
Committee:
Becoming a world leader in renewables
by Philippe Sauquet, President Gas, Renewables & Power
The mobility revolution
A worldwide ambition in biofuels
by Bernard Pinatel, President Refining & Chemicals
Engaging in the electric mobility revolution
by Alexis Vovk, President Marketing & Services
* * * * *
About Total
Total is a broad energy Group, which produces and markets fuels,
natural gas and low-carbon electricity. Our 100,000 employees are
committed to better energy that is safer, more affordable, cleaner
and accessible to as many people as possible. Active in more than
130 countries, our ambition is to become the responsible energy
major.
* * * * *
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL SE directly or indirectly owns investments are separate legal
entities. TOTAL SE has no liability for their acts or omissions. In
this document, the terms "Total", "Total Group" and Group are
sometimes used for convenience. 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
SE 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:
https://www.businesswire.com/news/home/20200930005496/en/
CONTACT: Total
Media Relations: +33 1 47 44 46 99 l presse@total.com l
@TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
SOURCE: Total
Copyright Business Wire 2020
(END) Dow Jones Newswires
September 30, 2020 08:34 ET (12:34 GMT)
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