Total recorded in the second quarter its first net loss since 2015, weighed down by heavy depreciations announced the day before as well as by the fall in crude prices and refining margins. The net loss reached $ 8.4 billion, from a profit of 2.8 billion a year earlier, the French oil and gas giant said in a statement Thursday. The last quarterly net loss was at the end of 2015.
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This result includes heavy asset write-downs for $ 8.1 billion already announced Wednesday evening. This accounting reassessment, motivated by the downturn in prices but also by the dynamics of the energy transition, mainly concerns the tar sands in Canada.
Adjusted profit, which excludes in particular the accounting effects related to the valuation of inventories and exceptional items, for its part reached 130 million dollars in the second quarter, a drop of 96%.
“ During the second quarter, the group faced very exceptional circumstances: the Covid-19 health crisis which affected the world economy and the crisis in the oil markets with the price of Brent falling sharply to $ 30 per barrel on average, historically low gas prices and very degraded refining margins given the fall in demand, ”commented CEO Patrick Pouyanné, quoted in a press release.
Total's hydrocarbon production also fell by 4% to 2.85 million barrels of oil equivalent per day (Mboe / d), reflecting in particular the will of certain members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies to pump less in order to support prices.
For the year 2020, the group now plans to produce between 2.9 and 2.95 Mboe / d, a little less than what had been announced until then.
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Prices have fallen following the Covid-19 pandemic, which has virtually shut down certain activities such as air transport. Prices have since recovered somewhat with a recovery in demand and the limitation of production in some countries. Total considers that the environment remains “ volatile ”, however, and in passing confirms its desire to save money and reduce its investments.