We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TOTAL's Production Portfolio, Cost Discipline to Fuel Growth
Read MoreHide Full Article
On Jan 2, we issued an updated research report on TOTAL S.A. . A strong production portfolio, focus on lowering operating costs and initiation of new projects will boost TOTAL’s performance. However, business operations in politically troubled regions and increasing competition could hamper the company’s profitability.
TOTAL has one of the best production growth profiles among the oil majors, characterized by an upstream portfolio with above industry-average exposure to the faster growing hydrocarbon producing regions of the world. With the least exposure among its peers to the mature North American and North Sea regions, the company’s upstream assets have lower natural decline rates and longer productive lives, which render TOTAL a significant competitive advantage.
To cope with the sluggish oil and gas prices, TOTAL has taken initiatives to lower its overall expenditure. Its cost savings initiatives should be able to provide ample support to margins. The company aims to achieve savings of $4 billion by 2018 on the back of these ongoing initiatives.
On the flip side, TOTAL’s global presence exposes the company to competition from national and international oil and gas majors. The company has to compete with the likes of Exxon Mobil Corporation (XOM - Free Report) , Royal Dutch Shell plc RDS-A and Chevron Corporation (CVX - Free Report) 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. An increase in competitive pressure from its peers could impact sales, in turn hurting TOTAL’s margins and market share in the global business.
Price Movement
Shares of TOTAL have gained 5.81% in the last one month, outperforming the Zacks categorized Oil and Gas - Integrated – International industry’s gain of 4.38%. Its outperformance can be attributed to the recent pact of the Organization of the Petroleum Exporting Countries (“OPEC”) to curb crude oil output to tackle the looming supply glut. Notably, this agreement led to a surge in crude oil prices, also benefiting TOTAL in the process.
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
TOTAL's Production Portfolio, Cost Discipline to Fuel Growth
On Jan 2, we issued an updated research report on TOTAL S.A. . A strong production portfolio, focus on lowering operating costs and initiation of new projects will boost TOTAL’s performance. However, business operations in politically troubled regions and increasing competition could hamper the company’s profitability.
TOTAL has one of the best production growth profiles among the oil majors, characterized by an upstream portfolio with above industry-average exposure to the faster growing hydrocarbon producing regions of the world. With the least exposure among its peers to the mature North American and North Sea regions, the company’s upstream assets have lower natural decline rates and longer productive lives, which render TOTAL a significant competitive advantage.
To cope with the sluggish oil and gas prices, TOTAL has taken initiatives to lower its overall expenditure. Its cost savings initiatives should be able to provide ample support to margins. The company aims to achieve savings of $4 billion by 2018 on the back of these ongoing initiatives.
On the flip side, TOTAL’s global presence exposes the company to competition from national and international oil and gas majors. The company has to compete with the likes of Exxon Mobil Corporation (XOM - Free Report) , Royal Dutch Shell plc RDS-A and Chevron Corporation (CVX - Free Report) 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. An increase in competitive pressure from its peers could impact sales, in turn hurting TOTAL’s margins and market share in the global business.
Price Movement
Shares of TOTAL have gained 5.81% in the last one month, outperforming the Zacks categorized Oil and Gas - Integrated – International industry’s gain of 4.38%. Its outperformance can be attributed to the recent pact of the Organization of the Petroleum Exporting Countries (“OPEC”) to curb crude oil output to tackle the looming supply glut. Notably, this agreement led to a surge in crude oil prices, also benefiting TOTAL in the process.
Zacks Rank
TOTAL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them>>