Total stabilizes its dividend after negative results

  •   05/05/2020 - 11h02
  •   HARMANT Adeline

This morning of Tuesday, May 5, 2020, investors specializing in the energy sector were able to view the quarterly results of the French group Total. Indeed, the group has shown results leaded by the drop in oil prices and demand due to the coronavirus crisis for this first quarter of the year 2020. However, it has stabilized its dividend and, at the same time, has put in place certain measures to strengthen its savings plan in order to face the current crisis.

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Total stabilizes its dividend after negative results
Image copyright: Alexandre Prevot - Flickr

The details of the savings plan announced by the Total Group this morning:

Thus, the Total Group, which is currently number two in the world energy sector just after the Royal Dutch Shell Group, announced this morning, in the wake of the publication of its quarterly results, its savings plan to deal with the health and economic crisis of Covid-19.

Thus, the group decided to reduce its production between 2.95 and 3 million barrels of oil equivalent per day for 2020. This represents a decrease of around 5% compared to its previous forecasts. This decision was, of course, influenced by Canada's voluntary production cutbacks as well as OPEC+ measures regarding production quotas.

It should also be recalled that the group had already announced, at the end of March, net investments that would be maintained below 15 billion dollars for this year. Total is now going back on this figure, which it is of course revising downwards as part of this rescue plan. It is now aiming for a level of investment below the 14 billion threshold, i.e. a drop of around 25% compared to what it forecast in February.

Finally, it should also be noted that the operating cost savings plan that the Total Group announced at the end of March, amounting to $800 million, has also been revised. It has now reached more than one billion, to which the group has also just added a plan to save another billion on energy costs.

 

The results published this morning by Total and the dividend information :

With respect to the results published this morning by the Group for the first quarter 2020, we note that Total recorded an adjusted net income of around 1.78 billion dollars for the first quarter, a decrease of 35%. Its production increased by 5% to 3,086 million barrels of oil equivalent per day.

As regards the interim dividend, it was set at 0.66 euros per share and remains stable compared to last year. Total intends to propose to its shareholders to implement a share-based payment option for the balance of the 2019 dividend. It should be noted that the Group also decided last month to suspend its share buyback program.