| TOTAL Fails to Gain from Production Boost, Low Prices Hurt | |
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On Aug 12, 2015, we issued an updated research report on TOTAL S.A. TOT. The company has one of the best production growth profiles among the oil majors having the lowest exposure to mature North American markets. However, the drop in commodity prices and increasing competition in the space are persistent headwinds.
TOTAL, a Zacks Rank #3 (Hold) stock, reported mixed results in the second quarter with its earnings per share beating the Zacks Consensus Estimate and total revenues lagging the same.
Amid the ongoing softness in commodity prices, TOTAL has decided to cut down on operating costs to cope with the difficult situation. The company aims to achieve more than $1.2 billion in operating cost savings in 2015, which will undoubtedly help margins.
TOTAL has however not compromised on its aggressive drilling and exploration strategy. TOTAL leveraged its strong financial position to make acquisitions and divested its less productive assets during the quarter to become more competitive. The company had plans to start eight new projects in the Upstream segment in 2015, out of which four have already started operations. Three more projects are expected to come online in the second half of 2015.
Even though new startups have helped the company to boost production in the second quarter, the benefit could not be realized due to lower prices. Realized hydrocarbon prices decreased 38% to $45.4 per barrel of oil equivalent (boe) from $73.1 per boe a year ago.
TOTAL operates in more than 130 countries, which provide a stable production stream, but also make it vulnerable to exchange rate fluctuation, political turmoil and change in government policies.
TOTAL’s global presence exposes this company to competition from national and international oil and gas majors. TOTAL has to compete with the likes of ExxonMobil XOM, Royal Dutch Shell RDS.A and Chevron Corporation CVX for acquiring assets and licenses for the exploration and production of oil and natural gas as well as for the sale of manufactured products based on crude and refined oil.
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TOTAL
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PRODUCTEUR |
CODE : FP.PA |
ISIN : FR0000120271 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
TOTAL est une société de production minière et de pétrole basée en France. TOTAL est productrice de gaz au Trinidad. Son principal projet en production est ANGOSTURA GAS au Trinidad. TOTAL est cotée au Royaume-Uni, aux Etats-Unis D'Amerique, en Allemagne et en France. Sa capitalisation boursière aujourd'hui est 96,8 milliards €UR (118,3 milliards US$, 96,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 04 juin 1993 à 10,01 €UR, et son plus haut niveau récent le 02 juin 2021 à 39,69 €UR. TOTAL possède 2 440 058 000 actions en circulation. |