Total Announce Fourth quarter and full-year 2019 results

Total’s Board of Directors met on February 5, 2020, to approve the Group’s 2019 financial statements. Commenting on the results, Chairman and CEO Patrick Pouyanné said: “The Group reported solid fourth quarter 2019 results with cash flow (DACF) of 7.4 B$, an increase of more than 20% compared to the fourth quarter 2018, and adjusted net income stable at 3.2 B$, despite a lower price environment.

In 2019, the Group generated cash flow of 28.5 B$, strong growth of 2.4 B$ compared to 2018, thanks to a positive contribution from all segments. This performance was achieved despite the drop in oil prices of 10% and European gas prices of 38%, or a price environment down on average by about 20%. The Group reported solid adjusted net operating income for the year of 11.8 B$, a decrease of 13%, and a return on equity above 10%. The Group reduced its organic pre-dividend breakeven to less than 25 $/b.

In the Upstream, start-ups and ramp-ups including Yamal LNG in Russia and Ichthys in Australia, Egina in Nigeria and Kaombo in Angola, generated strong cash flow and fueled production growth of 9% for the year, with LNG growth of nearly 50%.

The Exploration & Production segment increased cash flow to 18 B$, despite the deterioration of the environment, and the iGRP segment, with an increase in LNG sales of nearly 60%, generated cash flow of 3.7 B$, an increase of 80%.

The Downstream contributed stable cash flow of 6.6 B$, notably thanks to its non-cyclical activities and despite a decrease in refining and petrochemical margins on the order of 10%.

Net investments rose to 17.4 B$ and reflect in particular the strategy to strengthen LNG and deep offshore, as shown by the acquisition of Mozambique LNG and the launching of Arctic LNG 2 in Russia and Mero 2 in Brazil.

More than one-third of the net investments were made in the iGRP segment, which leads the Group’s lowcarbon ambition. Total enters the gas and renewables market in India in partnership with Adani and will build a giant 800 MW solar power plant in Qatar.

Total maintains a solid financial position with gearing of 16.7% excluding capitalized leases (20.7% including).

In accordance with the decision of the Board of Directors announced on September 24, the Group increased the 2019 final dividend by 6% to €0.68 per share. Including the interim dividends, the full-year 2019 dividend increased by 5% to €2.68 per share.

Finally, the Group bought back $1.75 billion of its shares in 2019 and projects 2 B$ of share buybacks in 2020 in a 60 $/b environment.”

Highlights since the beginning of the fourth quarter 2019

• Started production at giant Johan Sverdrup field in the North Sea and Iara in Brazil

• Launched Anchor projects and engineering studies for North Platte in Gulf of Mexico

• Agreement between NOC and Total on participation in Waha concession in Libya

• Extended Block 17 licenses to 2045 in Angola

• Acquired two offshore discoveries (Blocks 20-21) in Angola for potential development

• Signed an agreement to sell interest in Brunei offshore block CA1

• Expanded in Brazil pre-salt with new deep-offshore exploration block

• Acquired 50% interest in Surinam Block 58 with significant Maka Central-1 discovery

• Awarded construction of a large-scale (800 MW) solar power plant in Qatar

• Sold to Banque des Territoires a 50% interest in a portfolio of solar and wind assets in France

• Doubled production capacity of recycled polypropylene for auto market from Synova subsidiary

• Alliance with Zhejiang Energy Group to develop low-sulfur maritime fuel market in China

• Second agreement to supply CMA-CGM with LNG maritime fuel from Marseille

• Awarded concession to install and operate up to 20,000 new EV charging points in Metropolitan Region of Amsterdam

• Dedicated 400 M$ to Total venture capital fund to support carbon neutrality

Source / More : Total Fourth quarter and full-year 2019 results

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