NEWS - EUROPE
Total’s 2019 Strategy & Outlook Presentation
P
atrick Pouyanné, Chairman and CEO, Jean-Pierre Sbraire, CFO,
and Helle Kristoffersen, President, Strategy – Innovation, will
present Total’s Strategy & Outlook in New York today.
The presentation confirms Total’s implementation of its strategy for
profitable and sustainable growth for the benefit of all of its stakeholders,
taking into account the evolution of energy markets. It also provide
strong visibility on the Group’s roadmap to 2025.
Key messages of the presentation include:
Coping with volatile and changing energy markets
Total is adapting to changing energy markets to ensure a sustainable
future. Energy demand growth will benefit mainly gas and electricity,
and, within these markets, LNG and renewables will grow the fastest.
Maintaining the Group’s breakeven below 30 $/b and strong financial
position to ensure a sustainable future
In face of volatile energy markets, Total focuses on operational
excellence and financial discipline to maintain a low breakeven and
strong balance sheet. In recent years, Total has successfully reduced
its organic pre-dividend breakeven to less than 30 $/b and confirms
its key objective to maintain it below this level to be resilient in any
price environment. Discipline on costs will be maintained, illustrated
by the additional $1 billion cost reduction program until 2023 notably
supported by a strong digital ambition. A strong balance sheet with a
gearing maintained below 20% further strengthens the resilience of the
Group.
Oil & Gas: building on our strengths for sustainable and profitable
growth:
Total benefits from a large portfolio of profitable projects to fuel its
future growth post 2023 and is sanctioning more than 800 kboe/d of
new production, leveraging a favorable oil service cost environment.
Renewing reserves is based on two engines: exploration with recent
discoveries in North Sea, South Africa and Guyana and access to
discovered resources.Total has also demonstrated its agility by making
counter-cyclical acquisitions that have significantly high-graded the
portfolio. Over 2015-2020, more than 11 Bboe of resources will have
been added at less than 2.5 $/boe.
The acquisition of Anadarko’s African assets fits perfectly into the
strategy and improves visibility on the Group’s future. Downstream will
make significant additional contributions to cash flow.
Refining-Chemicals is focusing on growing petrochemicals using low
cost feedstock on integrated platforms and Marketing & Services is
expanding in large fast growing markets.
Both segments also invest in new businesses linked to the development
of low carbon economy (biofuels, bioplastics, plastic recycling, EV
charging points, natural gas for trucks and shipping…).
Investing in growing energy markets for sustainable long term.
The energy transition leads to a growing role for both natural gas
(mainly LNG) and electricity in the energy mix. Total will increase
its LNG sales to 50 Mt per year by 2025, supporting CFFO growth in
integrated LNG of 2.5 times between 2018 and 2025. In low carbon
electricity, Total will invest $1.5-2 billion per year, notably in Europe,
as a power producer from renewables and natural gas and distributor,
targeting 8 million customers by 2025.
Beyond Europe, Total is leveraging strong electricity demand by
investing in renewables generation using a capital light model to ensure
more than 15% equity IRR. This strategy for LNG and electricity
contributes to the Group’s ambition to reduce the carbon intensity of
the energy products used by our customers by 15% between 2015 and
2030. •
20
Eni Included in the Top 10 of Sustainability
Reporting
E
ni was included this year, for the first time, in the top 10 of the
companies best reporting on their sustainability performance,
an analysis published by the World Business Council for Sustainable
Development (WBCSD) showed.
Reporting matters is the WBCSD’s annual review of member
companies’ sustainability and integrated reports, in partnership with
Radley Yeldar (RY). This year’s edition, released yesterday, spanned 159
leading companies from 34 countries.
Eni was recognized by the WBCSD as a “good practice example” for
the principle “conciseness and alignment” by being able to create a
concise and coherent online summary, recap efficiently its sustainability
initiatives, and explain its strategy in a clear and comprehensive way.
WBCSD also underlined how having a volume fully dedicated to the
company’s decarbonisation strategy allows Eni to cover the topic in
detail, while at the same time allowing adequate coverage of the other
sustainability topics in the main volume.
Eni For 2018 – the latest version of the company’s sustainability report,
released in May – shows how Eni is transforming itself to face global
challenges and contribute to delivering on the United Nations’ 17
Sustainable Development Goals (SDGs). It highlights the work Eni has
carried forward in 2018 and the targets for the next years in priority
areas such as climate change, the environment, health and safety, the
respect for human rights, education and professional training and local
development.
“This result shows our progress in integrating sustainability in the very
values of our company,” said Claudio Descalzi, Eni’s Chief Executive
Officer. “Communicating our actions in an effective way is crucial to
unite our own people, as well as every person we work with, behind the
values of sustainability,” he explained.
Eni recently adopted a new Mission, inspired by the SDGs. The new
mission reflects the principles on which the company has built its new
business model, focusing on long-term investments both in operational
and in social terms, and looking beyond short-term profit priorities.
WBCSD is a global, CEO-led organisation of over 200 leading
businesses working together to accelerate the transition to a sustainable
world. WBCSD aims to make their member companies more successful
and sustainable by focusing on the maximum positive impact for
shareholders, the environment and societies. •