ACTION PLAN 2020
The Group is facing the current crisis stronger than during the 2015-16 oil crisis. More resilient, the company’s fundamentals are solid:
Gearing*
2014: > 30%
2019: 16.7%
Cash Breakeven (organic pre dividend)
2014: > 100 $/b
2019: < 25 $/b
Production cost
2014: 9.9 $/b
2019: 5.4 $/b
Organic Investments
2014: 26.4 G$
2019: 13.4 G$
* End of year excl. leases impact
But in a context of oil prices on the order of $30 per barrel, an action plan is implemented immediately based on the following three axes:
Organic Capital Investement : > 20% reduction -3.3 G$
Capital Investments :
Announced: 18 G$
New target: < 15 G$
Operating Expenditure (OPEX) Savings +500 M$
Open Savings VS. 2014:
Announced: > 5.0 G$
New target: 5.5 G$
2019: 4.7 G$
Stop buyback 1.5 B$ not spent
Buybacks:
Announced: 2 G$
Already achieved: 0.5 G$
This is not the first time the Group is coping with price volatility. Our best answer to weather the storm is to be excellent on what we control and in all our businesses with the support and the professionalism of the teams.
ORGANIC PRE-DIVIDEND CASH BREAKEVEN
Brent price level that covers fixed and variable costs, current taxes, taxes and organic investments before dividend payment.
