The Total Group still depends to a large extent on its oil-related activities, from which it still derives a large part of its profits today. Of course, the group has also been investing in green energies for several months now. During the third quarter, the energy giant thus achieved a net profit of 850 million euros, as announced last Friday, and thus deonce again demonstrated its resilience, thanks in particular to its integrated model from hydrocarbon exploration to the sale of energy directly to individuals. These are the words of the group's CEO, Patrick Puyanné. At the same time, Total also confirmed the distribution of a third interim dividend of $0.66 per share.
During the second quarter of 2020, the Total Group suffered from the fall in oil prices, due to the containment which resulted in a historic loss for a barrel of crude oil as well as the depreciation of many assets, of which its share was of course a part.
The third quarter was more positive for the group which benefited in particular from the exploration-production part with a net result of 1.1 billion dollars and a positive overall result. The rise above $20 and then to $40 per barrel of crude oil is of course also a major factor. The group thus demonstrates that it manages to remain profitable even with a relatively low barrel price.
At the same time, however, the refining crisis, which is still showing negative margins, due in particular to weak demand and overcapacity, continues to weigh on the group's results. As a result, Total's refineries lost $88 million in the third quarter. However, the Group's petrochemicals and marketing activities generated net income of $491 million.
Of course and in parallel with these results, the Total group is reassuring investors by continuing to invest massively in renewable energies. In a press release published at the end of last week, the group states as follows: "Gross installed renewable power generation capacity stood at 5.1 gigawatts (GW) at the end of the third quarter, a strong growth of 85% year-on-year, thanks in particular to the acquisition in India of 50% of a portfolio of more than 2 GW from the Adani Group.»
However, the gains are not yet there for this branch.
However, and for the first time, the group has specified that it has a portfolio of more than 14 GW of power generation capacity, installed or planned, and which already benefit from long-term purchase contracts or PPAs. This strategic model should provide the company with some stability in its revenues over the long term. Indeed, the group envisages $1 billion in net revenues from the industry by 2025.