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Total Q1 Profit Plunges

French energy giant Total SA (TTA.L,TTFNF.PK,TOT) reported that its first-quarter net income, group share, dropped to $34 million from $3.11 billion in the same quarter last year. On a per share basis, net loss was $0.01 compared to earnings per share of $1.16 in the prior year.

Quarterly adjusted net income, Group share, was $1.78 billion, a decrease of 35% year-on year, due to lower Brent prices, natural gas prices and refining margins as well as the impact of the Covid-19 crisis on demand. Adjusted earnings per share was $0.66 compared to $1.02 last year.

Sales for the quarter declined to $43.87 billion from $51.21 billion in the prior year.

The Group has decided to reduce net investments by 25% to $14 billion this year.

The 2020 cost savings program has been increased to at least $1 billion, in addition to saving on energy costs by more than $1 billion, notably in Refining & Chemicals.

In Upstream, the Group now anticipates 2020 production of between 2.95 and 3 Mboe/d, at least a 5% reduction compared to the previous 2020 forecasts, taking into account the voluntary reductions in Canada, the exceptional quotas announced by OPEC+, lower local demand for gas and the situation in Libya.

The company said its Chairman and CEO Patrick Pouyanné proposed to reduce his fixed salary by 25% for the remainder of 2020, including the month of May. Pouyanné's total remuneration will decrease by more than 30% in 2020 compared to 2019. The members of the board also decided to give up 25% of their attendance fees starting from the Annual Shareholders' Meeting.

The members of the Executive Committee agreed to reduce their fixed salaries by 10% for the remainder of the 2020 year.

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