French energy company Total SA on Friday trimmed its investment target for this year from $14 billion to $13 billion after reporting its third-quarter profit plummeted 93% year-on-year to $202 million. Adjusted net income dropped 72% year-on-year to $848 million, better than analysts’ estimates of a $572-million net income. Despite the plunging profit, Total said it would keep a dividend of €0.66/share for the third quarter, in contrast to its European peers Shell, BP, and Eni, which cut their payouts earlier this year.
Total oil and gas production was down 11% year-on-year to 2.715 million boepd in the third quarter, while cash flow fell 41% to $4.3 billion. The company also reduced its oil and gas output guidance for 2020 to below 2.9 million boepd, compared to 2.9 million-2.95 million boepd in the previous forecast.
Total said its refining margins were depressed in the last quarter, falling to under $10/ton in Europe. The company is planning to shift toward low-carbon energy and ramp up its budget in renewable energy. By the end of September, Total’s gross renewable installed capacity stood at 5.1 gigawatts (GW), jumping by 85% from the same period last year.
