Daily Management Review

Total to sell assets for $ 5 bln amid market volatility


French Total SA reported for the second quarter of this year. During the reporting period, the company's net profit fell by 26% to $ 2.8 billion. Total itself explains this by unfavorable market factors, including low oil prices.

Laurent Vincenti
Laurent Vincenti
Compared with the second quarter of 2018, cost of a barrel of oil fell by 7%. “Markets remain volatile, the cost of a barrel of Brent crude in the second quarter was $ 69, which is 9% higher than in the first quarter. However, prices for natural gas fell by 36% in Europe and by 26% in Asia,” explained head of Total SA Patrick Pouyanné.

In this regard, the company intends to focus on its strong projects in the gas segment and deep-water offshore fields. Total will sell those assets that can reach a break-even level only at high prices for oil and gas. “In accordance with the policy of active management of the portfolio of assets, in the period 2019-2020, assets in the amount of $ 5 billion will be sold, mainly in the mining and production sector,” Mr. Pouyanné said.

source: ft.com