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TOTAL (TOT) Puts Forward Long-Term Strategy and Outlook
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TOTAL SE aims to transform itself into a broad energy company by profitably increasing energy production from liquefied natural gas (LNG) and electricity. Through strategic initiatives, the company is aiming to create long-term value for shareholders.
TOTAL reaffirms the net-zero emission target for 2050 and has plans to reduce the Scope 3 emissions of European customers by 30%, in absolute value, by 2030. It aims to increase upstream production by around 2% per year between 2019 and 2025, mainly in the 2022-25 time period.
Usage of Clean Sources to Produce Energy
In the next decade, TOTAL aims to increase energy production to 4 thousand barrels of oil equivalent per day (Mboe/d) from 3 Mboe/d. It projects 50% of the increase in energy production to come from LNG and the rest to come from electricity, primarily from renewable assets. TOTAL will progressively scale up profitable investments in renewables and electricity by $3 billion per year from $2 billion, representing more than 20% of capital investments.
TOTAL has been expanding presence in the entire LNG value chain through strategic acquisitions and organic methods. It expects LNG sales to reach 50 million metric ton (Mt/y) by 2025 and further double in the 2020-2030 period. The company expects cash flow from the integrated LNG business to grow 40% to more than $4 billion in 2025 at $50 per barrel.
TOTAL is gradually building the clean electricity generation portfolio through organic means, acquisitions, partnerships and joint ventures. The acquisition of SunPower Corporation (SPWR - Free Report) has been enabling the company to expand solar operations since 2011. TOTAL aims to become a world leader in renewables, raising its objective to 35 GW gross capacity in 2025. The company predicts that renewables and electricity are expected to deliver a cash flow of more than $1.5 billion per year by 2025.
The renewable energy space will offer enough growth opportunities to investors. In addition to TOTAL, oil and gas companies like Chevron Corporation (CVX - Free Report) and Royal Dutch Shell Plc , among others, are also investing heavily in the renewable energy space.
Capital Investment & Cost Savings
Given the unprecedented economic crisis led by the COVID-19 outbreak, TOTAL aims to maintain a capital investment strategy and be flexible enough to invest in the range of $13-$16 billion annually over the 2022-2025 time frame, assuming oil price between $50 and $60 per barrel. Taking into consideration the current uncertainty and low prices, capital investment in 2021 is expected to be $12 billion.
The company will also focus on cost-reduction initiatives and expects the same to result in savings of $2 billion by 2023.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>
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TOTAL (TOT) Puts Forward Long-Term Strategy and Outlook
TOTAL SE aims to transform itself into a broad energy company by profitably increasing energy production from liquefied natural gas (LNG) and electricity. Through strategic initiatives, the company is aiming to create long-term value for shareholders.
TOTAL reaffirms the net-zero emission target for 2050 and has plans to reduce the Scope 3 emissions of European customers by 30%, in absolute value, by 2030. It aims to increase upstream production by around 2% per year between 2019 and 2025, mainly in the 2022-25 time period.
Usage of Clean Sources to Produce Energy
In the next decade, TOTAL aims to increase energy production to 4 thousand barrels of oil equivalent per day (Mboe/d) from 3 Mboe/d. It projects 50% of the increase in energy production to come from LNG and the rest to come from electricity, primarily from renewable assets. TOTAL will progressively scale up profitable investments in renewables and electricity by $3 billion per year from $2 billion, representing more than 20% of capital investments.
TOTAL has been expanding presence in the entire LNG value chain through strategic acquisitions and organic methods. It expects LNG sales to reach 50 million metric ton (Mt/y) by 2025 and further double in the 2020-2030 period. The company expects cash flow from the integrated LNG business to grow 40% to more than $4 billion in 2025 at $50 per barrel.
TOTAL is gradually building the clean electricity generation portfolio through organic means, acquisitions, partnerships and joint ventures. The acquisition of SunPower Corporation (SPWR - Free Report) has been enabling the company to expand solar operations since 2011. TOTAL aims to become a world leader in renewables, raising its objective to 35 GW gross capacity in 2025. The company predicts that renewables and electricity are expected to deliver a cash flow of more than $1.5 billion per year by 2025.
The renewable energy space will offer enough growth opportunities to investors. In addition to TOTAL, oil and gas companies like Chevron Corporation (CVX - Free Report) and Royal Dutch Shell Plc , among others, are also investing heavily in the renewable energy space.
Capital Investment & Cost Savings
Given the unprecedented economic crisis led by the COVID-19 outbreak, TOTAL aims to maintain a capital investment strategy and be flexible enough to invest in the range of $13-$16 billion annually over the 2022-2025 time frame, assuming oil price between $50 and $60 per barrel. Taking into consideration the current uncertainty and low prices, capital investment in 2021 is expected to be $12 billion.
The company will also focus on cost-reduction initiatives and expects the same to result in savings of $2 billion by 2023.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>