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Buy and trade Total shares

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The oil and energy markets are currently the most volatile and this is reflected on the price fluctuations of certain stock exchange shares. This is the case for example for Total Company shares upon which you can speculate using CFDs, or even buy them through the online banks. These assets, highly popular with investors, offer the opportunity of good profits to individual investors, as long as they understand how this company operates and its activity sectors.
 

General presentation of the Total Company:

The Total Company that we know today has not always existed in its current state. In fact, it is through the merger and acquisitions of the first company and others such as Petrofina and Elf Aquitaine that Total came into being. In the beginning the Total Company was called ‘Compagnie Française des pétroles’ (French Oil company).

Since 2007 Total has been the largest French company as well as that with the highest share capital throughout the Euro zone.  It should also be noted that Total is also the fifth largest oil group behind Exxon Mobil, Chevron Texaco, Shell and BP

The annual turnover of this company is around 10 billion Euros and its activities can be divided into several main sectors: 

  • The major activity sector of Total is of course the refining and distribution of crude oil which includes the trading and sea transport of petrol. The group actually includes 25 specialised refineries throughout the world and 16,000 petrol stations internationally. This sector represents the largest part of the company’s turnover.
  • The production and distribution of fuel are also two major activities of the Total Company. These are natural gas and coal with which we include transport, storage and sales activities. This part currently represents 15% of the company’s turnover.
  • Finally the last activity sector of the Total Company is the production of polyethylene and fertilizers.

The oil production managed by Total is distributed throughout several continents principally Africa but also Europe, the Middle East and Asia.

 

The major competitors of Total:

The Total Group is currently one of the five top global oil producers. It therefore has four direct competitors, all large companies in this sector. To assist you in trading effectively in the Total share price here are the details of its four major competitors:

  • Royal Dutch Shell: This group, based in the Netherlands, achieves over 272 billion dollars in annual turnover and produces more than 3 million barrels of oil per day.
  • ExxonMobil: Based in the United States, ExxonMobil currently produces over 4.1 million barrels per day and achieves an annual turnover of 268 billion dollars.
  • BP: This company, originating from Great Britain, achieves an annual turnover of 226 billion dollars and produces 3.3 million barrels per day.
  • Chevron: Situated in the United States, this company achieves a turnover of 138 billion dollars per year and produces over 2.6 billion barrels per day.

The Total group is placed in fourth position worldwide in its sector between BP and Chevron with an annual turnover of 165 billion dollars and 2.3 billion barrels per day.

 

The major partners of Total:

The Total group has also implemented strategic partnerships with certain companies such as:

  • PSA: Total became associated with PSA over 50 years ago and, in 2017, renewed this collaboration. Total is notably the sole supplier of engine lubricants to PSA factories.
  • Samsung: Total also created a partnership with the Samsung group related to the Asian market. Their collaborative company has exercised activities in the petrochemicals sector in South Korea for over ten years now.

 

Total Company listing

Total shares are listed on the French stock market Euronext Paris as well as the CAC40, Total has a 12.51% part of this index. 

Ever since the introduction onto the market, Total shares have undergone strong movement fluctuations, mainly increasing in the beginning followed then by a strong downwards movement during 2005. In 2007 they started climbing again with the general worldwide oil price boom.

Since 2010 the price has continued to rise so reaching its original level.

 

Some advice for trading in Total shares:

Whether you decide to invest in Total shares in order to add them to your investment portfolio or you wish to simply speculate on the movement of its share price, these assets could be highly profitable if you take into account the pertinent indicators.

Of course, it is above all important to monitor the price of crude oil to forecast the level of future demand, but be careful, a strong rise in the price of oil can lead to a drop in demand and therefore cause a decrease in the company profits.

The news and events of the energy sector are also primordial in the implementation of your stock market investment strategy relating to Total shares. Therefore, worldwide economic and political decisions that have a direct connection with the oil market will have an influence on the demand for Total shares and those too of other companies in the petroleum sector.

Finally, if you use CFDs to speculate on the price of Total shares, do not forget to take into account all the new investments of this company and its diverse sectors of activity.

 

Analysis of the historical movements of the Total share price:

It can be beneficial to analyse the historical stock market charts of the Total share price over the last ten years. By doing so a strong volatility can be observed with a succession of highly visible peaks and dips that can be directly linked to economical events that have marked the history of this group and that we will examine in detail later on. 

With a quotation price of above 61 Euros in July 2007, Total experienced one of its highest historical levels and the highest price over a decade. However the share price then followed a staggered falling correction until reaching close to €32 in October 2008.

During several years the asset price tried to cross the threshold of €40. It achieved this level twice, between September 2009 and April 2010 and then between January and May 2011. But it wasn’t until May 2013 that it experienced a prolonged rising trend. In fact, since this date, a highly volatile rising trend enabled the share price to reach €51.38 in June 2014.

Of course, just after this rise, the price of this asset underwent a downwards retraction, still marked by numerous micro-movements, towards €40.51 which it reached in December 2015. It then followed a new rising trend that was still noticeable at the beginning of 2017.

 

What are the signals to follow when trading Total shares? 

Of course, Total share prices are straightforwardly linked to the oil price as it is the latter that influences demand. The stronger the demand, the higher the price of the company shares and so the higher value of this company will increase the profitability as well. 

As well as monitoring closely the oil price you should also watch all economic and political news and events that may have an effect on this commodity and also take into account the prices at the petrol pumps which differ from that of the barrel price to a greater or lesser extent. 

To summarise, Total shares are relatively easy to follow and their movements can generally be easily anticipated by investors. To learn more about this sector you can also consult our article on investing in oil.

 

Economic and financial history of the Total Company:

Following its introduction onto the stock markets in 1929, the history of the Total Company has been marked by numerous events that have influenced the price of its shares to a varying degree as well as its general success. Here we have summarised what could be considered the major events in its history:

  • In 1961 Total discovered the offshore fields in Gabon.
  • Total merged with the Desmarais Frères Company in 1965.
  • The first deep water exploration was undertaken in the Mediterranean in 1982.
  • In 1986 the first automatic service stations opened in France.
  • In 1993 part of the shares held by the state was sold to individuals.
  • Total became Total Fina in 1999 following a merger with the Belgian company Petrofina.
  • In the year 2000 Total purchased Elf Aquitaine. The group thereby became known as Total Fina-Elf and doubled its turnover.
  • In 2003 the company again assumed the ‘Total’ name.
  • In 2005 Total invested in the Akpo field.
  • In 2006 Total undertook a split with Arkema, a specialist in vinyl products and industrial chemicals. In this way, every Total share owned gave the acquired right to an Arkema share.
  • In 2007 the SAFE Chine sovereign fund invested 2.8 billion dollars and thereby became a 1.6% shareholder in the capital of the Total Company.
  • In 2008, Qatar invested two billion Euros in the company’s capital and became one of its major shareholders.
  • In 2010, Total sold its subsidiary Jarden, specialised in sponges, kitchen gloves and childcare items, to Mapa-Spontex for 335 million Euros.
  • In 2011, Total massively invested in solar energy with the purchase of a 60% share in the American Sunpower Company.
  • In 2014 Total became the fifth largest oil producer in the world after Exxon, Chevron, Royal Dutch Shell, and PetroChina.
  • In 2015 Total transferred 25% of its share in the development of the Mourmansk oil field to Gazprom.
  • In 2016, Total signed an agreement with the Iranian Minister of Oil to develop and produce the South Azadegan oil field.
  • Still in 2016, Total purchased the Saft Group, a battery manufacturer, for 900 million Euros to develop its renewable energy section. It also purchased Lampiris, a Belgian natural gas and green energy provider.

Finally, at the end of 2016, Total announced an alliance with the Brazilian Petrobas Group for 2.2 billion dollars.

 

CFDs for trading in Total shares online:

The CFDs offered by the Forex brokers enable easier investment in the oil sector by buying and selling positions on Total shares online directly, in real time, on the stock markets. By taking these positions, either rising or falling, it is possible to take advantage of the extreme volatility of the Total share price.

Also, CFDs offer a leverage effect that enables an increase in profits without the need for a major capital investment. Another advantage of CFDs is that the trading platforms that offer them also offer a range of tools and functions to their users that promote an improved analysis of the markets and assist in targeting opportunities that could be seized.

To conclude, CFDs are specially created contracts that are appropriate for trading in the Total share price or the price of any other shares in this sector.

 

What are the signals to follow when trading Total shares? 

Of course, Total share prices are straightforwardly linked to the oil price as it is the latter that influences demand. The stronger the demand, the higher the price of the company shares and so the higher value of this company will increase the profitability as well. 

As well as monitoring closely the oil price you should also watch all economic and political news and events that may have an effect on this commodity and also take into account the prices at the petrol pumps which differ from that of the barrel price to a greater or lesser extent. 

To summarise, Total shares are relatively easy to follow and their movements can generally be easily anticipated by investors. To learn more about this sector you can also consult our article on investing in oil.

Trading made easy on Total shares:

Trading in the Total share price is a good way of investing in the stock markets online by speculating with your own capital according to your own strategies. Also, the numerous tools available through the online Forex brokers are of valuable assistance to you for taking position.