Total reported a 96 per cent drop in adjusted revenue for the second quarter of 2020 resulting from decrease costs and COVID-19 results.

Courtesy of Total

The firm reported an adjusted web earnings of $126 million, down from $2.9 billion reported within the corresponding quarter final 12 months.

Total famous it’s going to take an $eight.1 billion impairment on its belongings.

Commenting on the outcomes Total’s CEO Patrick Pouyanne stated, “During the second quarter, the group confronted distinctive circumstances: the COVID-19 well being disaster with its impression on the worldwide economic system and the oil market disaster with Brent falling sharply to $30/b on common, fuel costs dropping to historic lows and refining margins collapsing resulting from weak demand.”

He added that the OPEC+ manufacturing restraint has contributed to the market restoration since June, with a mean brent worth above $40/b.

The manufacturing was curtailed by near 100,000 boe/d within the second quarter to 2.85 million boe/d. Total anticipates full-year manufacturing within the vary of two.9-2.95 million boe/d in 2020.

Total LNG gross sales soar

Total LNG gross sales jumped by 22 per cent within the second quarter in comparison with final 12 months, resulting from a rise in buying and selling actions.

Total gross sales reached 10.four million tons within the second quarter, in comparison with eight.5 Mt within the corresponding quarter final 12 months.

For the primary half, complete gross sales elevated by 24 per cent year-on-year for a similar cause and due to the ramp-up of Yamal LNG and Ichthys plus start-up of the primary two Cameron LNG trains within the US.

LNG gross sales within the first six months reached 20.2 million tons, up from 16.three Mt within the corresponding interval in 2019.

The common LNG gross sales worth fell by 30 per cent within the second quarter of 2020 in comparison with the earlier quarter.

The share of volumes bought at spot costs elevated within the second quarter 2020 in comparison with the primary quarter of 2020 resulting from deferrals of LNG liftings by long-term contract patrons, whereas the common promoting worth of long-term LNG contracts LNG phrases decreased by solely 16 per cent as a result of delayed impression of decrease oil costs.


Total famous the oil costs strengthened because the starting of June, reaching round $40/b.

The oil atmosphere, nevertheless, stays risky, given the uncertainty across the extent and pace of the worldwide financial restoration post-COVID-19.

Under its 2020 motion plan, Total goals to maintain web investments under $14 billion ith financial savings of $1 billion on working prices in comparison with 2019.

The firm goals to proceed to profitably develop in low carbon electrical energy, significantly in renewables, with near $2 billion of investments in 2020.

In LNG, Total anticipates important deferred liftings within the third quarter and expects the decline in oil costs noticed within the second quarter to have an effect on long-term LNG contract costs within the second half of the 12 months.

Total additional expects its total manufacturing to hit the low level within the third quarter.

The ramp-up of Iara’s second FPSO in Brazil will contribute to manufacturing progress within the final a part of the 12 months.

In the Downstream, excessive stock ranges proceed to weigh in on refining margins and utilization charges. In Marketing, exercise in Europe returned to 90 per cent of its pre-crisis stage since June and the corporate anticipates that it’s going to stay at a comparable stage within the coming months.

The publish Total logs revenue regardless of COVID-19 results appeared first on Offshore Energy.

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