Share

Profits plunge at French oil company Total

Paris - French oil company Total says it expects 2015 profits to plunge by more than 20% from a year earlier because of falling oil prices.

Total chief Patrick Pouyanne said that Total's earnings were supported by its transformation, refining and distribution activities.

"We're present all along the chain," he said.

"But at the same time our profits are falling. They will be down a bit more than 20% in 2015 because the oil price fell by 50%."

Total officials said Pouyanne's remarks were based on results for the first nine months of 2015, but that the full-year results were headed for a similar drop, as predicted by analysts.

Total in September announced cuts in spending and investment, citing the weak oil price.

It expects to invest between $20bn and $21bn this year and $17bn to $19bn in 2017, against $23bn to $24bn in 2015.

Operating costs are to be cut by $3bn and Total wants to sell $10bn worth of assets as well as cut its payroll by 2 000 out of 100 000 employees, it said.

Global economy

The figures co-incided with a warning by the International Monetary Fund that the sharp collapse in the oil price was proving more of a drag on the global economy than a stimulus.

The financial strains on exporters and the deep investment cutbacks in the industry are more than offsetting the expected gains from cheap oil enjoyed by key importers like Japan and the United States, the IMF said.

Low oil prices, while hurting both oil producers and oil companies, can often be positive for consumers and non-oil corporates and global growth.

The oil price this week hit 12-year lows and is currently trading at or below $29 per barrel.

Fears over China and the global economy on top of a persistent supply glut have sparked a dizzying fall in oil prices which have been compounded by the recent return of major oil exporter Iran's return to the market.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.93
-0.1%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
906.59
+1.1%
Palladium
1,012.66
+1.1%
Gold
2,221.84
+1.2%
Silver
24.88
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders