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 to Sell 4% Interest in Ichthys to Offset Cost Overruns
Read MoreHide Full Article
TOTAL S.A. announced that it has decided to sell 4% interest in the Ichthys liquefied natural gas (“LNG”) project to its operating partner INPEX for $1.6 billion. This decision is subject to Australian regulatory approvals and will lower the company’s stake in the Ichthys project to 26%.
The primary reason behind the decision to sell interest in Ichthys is to mitigate the impact of cost overruns. The final capital expenditure of the project is estimated to be $45 billion, up 12.5% from the estimates provided in 2017. The decision to sell 4% interest is to control its capital employed in Ichthys.
Importance of Ichthys
At full capacity, the Ichthys offshore facilities and the two-train onshore liquefaction plant will supply 8.9 million tons per year (Mt/y) of LNG and 1.65 Mt/y of liquefied petroleum gas (LPG), along with 100,000 barrels of condensate per day.
The demand for LNG is rising across the globe. Notably, a major portion of LNG produced from the Ichthys project is going to Japan. TOTAL’s 26% interest in this project will boost its 2019 cash flow over the long term.
TOTAL’s LNG Push
TOTAL has been working to expand its presence in the LNG market through acquisitions and partnerships, given the fact that demand for the clean burning fuel is rising across the globe. TOTAL’s decision to acquire Engie’s LNG portfolio for $1.5 billion will continue to support the company’s LNG business.
Last month, TOTAL signed a Memorandum of Understanding with Sempra Energy (SRE - Free Report) to cooperate in the development of North American liquefied natural gas (LNG) export projects.
Long-Term Plans
TOTAL is presently working to optimize its capital projects, and also concentrating on the proper execution of these projects, as well as lowering capital costs. The company plans to invest $16 billion in 2018 and in the range of $15-$17 billion in the 2019-2020 time period.
TOTAL’s long-term outlook is likely to increase its upstream production by 6-7% per year on an average between 2017 and 2020.
The company also makes strategic acquisitions to expand its operations. The development of the company’s asset portfolio through organic and inorganic means has resulted in the creation of strong production growth profiles.
Zacks Rank & Key Picks
TOTAL currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same industry are Eni Spa (E - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Premier Oil PLC , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Eni Spa and Premier Oil’s earnings estimates for 2018 have moved up15.9% and 34.5%, respectively, in the past 60 days.
Shares of Eni Spa, Premier Oil and TOTAL have outperformed the broader industry in a year’s time.
One Year Price Performance
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
TOTAL to Sell 4% Interest in Ichthys to Offset Cost Overruns
TOTAL S.A. announced that it has decided to sell 4% interest in the Ichthys liquefied natural gas (“LNG”) project to its operating partner INPEX for $1.6 billion. This decision is subject to Australian regulatory approvals and will lower the company’s stake in the Ichthys project to 26%.
The primary reason behind the decision to sell interest in Ichthys is to mitigate the impact of cost overruns. The final capital expenditure of the project is estimated to be $45 billion, up 12.5% from the estimates provided in 2017. The decision to sell 4% interest is to control its capital employed in Ichthys.
Importance of Ichthys
At full capacity, the Ichthys offshore facilities and the two-train onshore liquefaction plant will supply 8.9 million tons per year (Mt/y) of LNG and 1.65 Mt/y of liquefied petroleum gas (LPG), along with 100,000 barrels of condensate per day.
The demand for LNG is rising across the globe. Notably, a major portion of LNG produced from the Ichthys project is going to Japan. TOTAL’s 26% interest in this project will boost its 2019 cash flow over the long term.
TOTAL’s LNG Push
TOTAL has been working to expand its presence in the LNG market through acquisitions and partnerships, given the fact that demand for the clean burning fuel is rising across the globe. TOTAL’s decision to acquire Engie’s LNG portfolio for $1.5 billion will continue to support the company’s LNG business.
Last month, TOTAL signed a Memorandum of Understanding with Sempra Energy (SRE - Free Report) to cooperate in the development of North American liquefied natural gas (LNG) export projects.
Long-Term Plans
TOTAL is presently working to optimize its capital projects, and also concentrating on the proper execution of these projects, as well as lowering capital costs. The company plans to invest $16 billion in 2018 and in the range of $15-$17 billion in the 2019-2020 time period.
TOTAL’s long-term outlook is likely to increase its upstream production by 6-7% per year on an average between 2017 and 2020.
The company also makes strategic acquisitions to expand its operations. The development of the company’s asset portfolio through organic and inorganic means has resulted in the creation of strong production growth profiles.
Zacks Rank & Key Picks
TOTAL currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same industry are Eni Spa (E - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Premier Oil PLC , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Eni Spa and Premier Oil’s earnings estimates for 2018 have moved up15.9% and 34.5%, respectively, in the past 60 days.
Shares of Eni Spa, Premier Oil and TOTAL have outperformed the broader industry in a year’s time.
One Year Price Performance
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>