The Shareholders' Newsletter SN#65

Outlook by Jean-Pierre Sbraire, Group Chief Financial Officer


© LuttJulien - Capa - Total


Total is resilient amid the crisis and continuing its transformation.

Jean-Pierre Sbraire,
Group Chief Financial Officer

In the particularly difficult context in 2020, as early as March, the Group implemented an immediate action plan and proved its resilience thanks to the quality of its portfolio (production cost of $5.1 per barrel oil equivalent, the lowest among its peers) and its integrated model with cash flow (DACF) generation of nearly $18 billion. It posted adjusted net income of $4.1 billion and, thanks to strong discipline on investments ($13 billion, down 26%) and costs ($1.1 billion in savings), the organic cash break-even was $26 per barrel. Consistent with its climate ambition, the Group recorded exceptional asset impairments of $10 billion, notably on Canadian oil sands assets, most of which were recorded in its accounts at the end of June, leading to an IFRS loss for the year of $7.2 billion. With a gearing of 21.7% at the end of 2020, your Group preserves its good financial strength.

Supported by OPEC+ quota compliance, oil prices have remained above $50 per barrel since the beginning of 2021. However the oil environment remains uncertain and dependent on the recovery of global demand, still affected by the Covid-19 pandemic.

In a context of disciplined OPEC+ quota implementation, the Group anticipates 2021 production will be stable compared to 2020, benefiting from the resumption of production in Libya.

The Group continues its profitable growth in LNG with sales expected to increase by 10% in 2021 compared to 2020, notably due to the ramp-up of Cameron LNG.

European refining margins remain fragile, with low demand for jet fuel weighing on the recovery of distillates. However, thanks to the resilience of Marketing & Services, the Group expects Downstream to contribute more than $5 billion of cash flow in 2021, assuming refining margins of $25 per ton.

Net investments are projected at $12 billion in 2021, while preserving the flexibility to mobilize additional investments, should the oil and gas environment strengthen. The Group maintains strong discipline on spending, and targets additional savings of $0.5 billion in 2021. 

The Group maintains its priorities for cash flow allocation: investing in profitable projects to implement the Group’s transformation strategy, support the dividend and maintain a strong balance sheet.

Already in 2021, in renewables, the Group has announced more than 10 GW of additional projects through the acquisition of a 20% stake in Adani Green Energy Limited ( AGEL), the world’s leading solar developer, a partner with Hanwha in the United States with a 1.6 GW portfolio, and the acquisition of a 2.2 GW portfolio of projects in Texas. Total will allocate in 2021, more than 20% of its net investments to Renewables and Electricity.


These are investments made by the Group, excluding acquisitions and asset sales. The total amount of Group investments including acquisitions and asset sales is called “net investments” in our different financial documents.