PARIS (Reuters) – French energy giant Total said on Thursday it will sell assets worth around $5 billion mostly from its upstream exploration and production business as it seeks to focus on low breakeven projects that can withstand low oil prices.
The company reported a 19% drop in adjusted net profit in the second quarter at 2.9 billion compared with the same period last year which it attributed to a combination of unfavorable market factors.
Oil - Prices - Quarter - % - Fall
These include low oil prices compared with the second quarter of 2018, down 7%, a sharp fall in gas prices, while its refining margin tumbled.
“Markets remained volatile with Brent averaging $69 per barrel in the second quarter, an increase of 9% compared to the previous quarter but natural gas prices were down 36% in Europe and 26% in Asia,” Total Chairman and Chief Executive Officer Patrick Pouyanne said.
Company - Spree - Acquisitions - Expansion - Gas
The company, which has carried out a spree of acquisitions and expansion particularly in the gas and electricity market under Pouyanne, said it was preparing its future by focusing on its core strength in the gas segment and deep offshore.
The strategy would be complemented by the divestment of assets that only break even at high oil and gas prices, such as the recent sale...
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