TIDMTTA
Patrick Pouyanné, Chairman and CEO, and Patrick de La
Chevardière, CFO, will today present Total's (Paris:FP) (LSE:TTA)
(NYSE:TOT) Strategy & Outlook to the financial community in New
York. The presentation slides and webcast are available on
total.com.
Key messages of the presentation include:
Consistently delivering
Over the past three years, Total has demonstrated a track record
of delivering on its objectives including production growth, cost
reduction, capital discipline, and asset sales. The downstream
business continues to provide best in class profitability and
robust cash generation. The result is a stronger company with a
post-dividend breakeven lowered to 50 $/b, more than halved
compared to 2014.
Going forward, Total reaffirms its strong position with:
-- Outstanding production growth of 6-7% per year from 2017 to 2020,
-- 15-17 B$ per year of capital investment over the same period, and
-- An Opex reduction target of 5B$ per year by 2020 compared to
the 2014 base, increased from 3.7 B$ in 2017
Creating value through the cycle
Total has taken advantage of the cycle since 2015 to acquire, at
a cost of less than 2.5 $/boe, more than 7 billion boe of low
breakeven resources, representing 25% of the Upstream portfolio,
significantly high-grading the asset base.
Total is now seizing the favorable cost environment to sanction
both major projects and short-cycle opportunities. The upgraded
portfolio has a rich pipeline of major projects to be sanctioned by
2020 that will add more than 700 kboe/d of production, thus
contributing to a 5% average growth from 2017 to 2022. In addition,
the Group has a number of short-cycle projects such as deepwater
tie-backs and infill drilling which can be developed at a cost of
less than 7 $/boe and offer high returns and quick payback.
Building a responsible energy company on core strengths and
growing markets
Total integrates climate issues into its strategy and takes into
account anticipated market trends. As such the Group will focus on
low breakeven oil projects, expand along the full gas value chain
and develop a profitable low carbon electricity business. To better
represent this to the market, the Group will update its reporting
structure from 2019 with the creation of a new segment called
Integrated Gas, Renewables and Power (iGRP). This segment will
consolidate the current Gas, Renewable and Power perimeter as well
as the Upstream and Midstream LNG assets currently reported in
Exploration & Production
In addition, the Group has released today the 3rd edition of its
"Integrating Climate into our Strategy" report which includes a new
Carbon Intensity Indicator. The Group's objective is to reduce the
carbon intensity of its energy sales by 15% from 2015 to 2030.
Beyond 2030, it has the ambition to pursue its efforts or possibly
to accelerate as new technologies become available and public
policies are put in place and reach a reduction of around 25% to
35% by 2040.
Delivering shareholder return
The Group has clear visibility on cash flow growth to 2020,
driven by project startups and recent acquisitions. At 60 $/b
Brent, cash flow is expected to increase by 7 B$ from 2017 to 2020
and return on equity to increase to 12%.
Total is implementing the shareholder return policy announced in
February:
-- The 2018 interim dividends have been increased by up 3.2%, in line
with an increase of 10% by 2020,
-- The Group is buying back in 2018 1.5 B$ of shares as part of the 5 B$
program from 2018-20
Total is confident that its clear strategy and solid execution
will continue to deliver peer leading shareholder returns for
investors.
***
Following the Strategy & Outlook presentation, there will be
a series of Business Unit Presentations made by members of the
Executive Committee and other Senior Executives:
Deepwater: A profitable source of growthArnaud Breuillac,
President, Exploration & Production
Growing in the LNG integrated value chainLaurent Vivier, Senior
Vice-President, Gas
Expanding PetrochemicalsBernard Pinatel, President, Refining
& Chemicals
Marketing & Services of the futureMomar Nguer, President,
Marketing & Services
Leveraging new technologiesMarie-Noëlle Semeria, Senior
Vice-President, Research & Development
Integrating climate into our strategyPhilippe Sauquet,
President, Gas, Renewables & Power, President
Strategy-Innovation
About Total
Total is a global integrated energy producer and provider, a
leading international oil and gas company, a major player in
low-carbon energies. Our 98,000 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.
* * * * *
Cautionary noteThis 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.
TotalMedia Relations:+33 1 47 44 46
99presse@total.com@TotalPressorInvestor Relations:+44 (0)207 719
7962ir@total.com
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180925005742/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
September 25, 2018 10:09 ET (14:09 GMT)
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