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The numbers will decrease (- 2 000 people at the end of the year about 100 000), investments in exploration and exploitation will be reduced, as well as refinery capacity. The value of certain assets of the group was also reassessed downward to account for this decline in price of black gold.
- What is the magnitude of the decline oil prices?
The price of Brent crude fell $ 115 (101 euros) in mid-June 2014 to 55 dollars in late December.
Read also: Oil prices continue to fall
- What is the impact on the results of Total
- where the group he will curb investment?
- What are asset impairments?
- Disposals Are asset considered?
- Why does the group want to resize its refineries?
- Total will he cut production?
The adjusted Group net income for 2014 was down 10% to $ 12.8 billion (€ 11.3 billion). He even down 62% (4.24 billion) taking into account the impairment of assets and inventory effects.
The turnover fell by 6% to 236.12 billion dollars
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The company had already announced it a year ago, a decline in investment in exploration and production . Faced with falling prices that began a few months later, she had decided to amplify this movement.
In early January, Mr. Pouyanné announced a reduction of 10% of investments (and 30% for exploration campaigns): from $ 26 billion in 2014, they should fall to 23-24 billion this year. They had reached a historic high in 2013 with $ 28 billion.
These reductions will primarily on mature fields in the North Sea and West Africa. Their decline was faster than expected, which sometimes doubles the return period on investment.
Total announced Thursday, $ 6.5 billion of writedowns in the fourth quarter 2014 to reflect the decline in oil prices. These impairments overall reach $ 7.1 billion (€ 6.2 billion) over the year 2014.
The downward revaluations of assets mainly relate to the Canadian oil sands, gas not Conventional – including shale in the United States. – but the group’s participation in the gas field Kashagan in Kazakhstan and the French and UK refining
Yes. Total plans to accelerate its $ 10 billion disposals program from 2015 to 2017 to achieve up to 5 billion this year.
This business is chronic overcapacity for years, due to both a decrease in fuel consumption on the Old Continent and insufficient capacity to produce diesel.
Total will halve the capacity of its refinery in Lindsey (United Kingdom), where the number will fall from 580 to 400 employees
Au- Beyond that, the group will engage in spring a comprehensive restructuring plan of refining in Europe.
Two French refineries, including the La Mede (Bouches-du-Rhône), will have to be decided difficult
Read also:. Refineries: Total agrees to close “no industrial site” in France
What is now breaking even in oil production?
Total estimated its “neutral”, that is to say, the point at which the operation is profitable, must be lowered this year $ 70 per barrel. This means achieving a reduction of $ 40 per barrel
“Read more:. Lower oil prices: the market will not return to its past peaks according to the IEA
A priori not. The group continues to expect an increase in production and is a goal a little higher than 2.3 million barrels per day of oil and gas (2.15 million in 2014), with the start of large projects (Angola, Nigeria, Scotland …) and the renewal of the enormous concession of Abu Dhabi.
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