Total tightens belt despite output boost

摘要

Record production growth and strong downstream results helped Total to soften the impact of lower oil and gas prices last year, but the firm is targeting deeper cuts to investment and costs to ease the strain on its balance sheet. Total has reduced 2016 organic capital expenditure (capex) plans to $19bn from its previous forecast of $20bn-21bn, and down from its 2015 capex of $23bn. The firm, which was first among the majors to announce capex cuts for 2014, plans to reduce investment this year by almost 30pc from 2014. Total is “transitioning from an intensive investment pace, so the level of committed capex is decreasing”, chief executive Patrick Pouyanne says. In combination with rising output, this gives Total financial flexibility, especially from 2017 onwards, he says.