TOTAL focus on lower debt, higher oil prices

TOTAL have adopted a very clear strategy for surviving the downturn. The results statement today particularly highlights their success in strengthening their balance sheet. Net debt to equity now stands at just 15.4%, whilst they are “maintaining a high-level of liquidity and divesting non-strategic holdings”.


TOTAL also see a need “in the short-term” to adjust oil “supply to lower levels of demand”. But they “reaffirm their view of higher oil prices in the medium to long term, supported by a tight supply-demand balance”.

Their view is supported by a report in today’s China Daily. This features calls from leading analysts to increase China’s storage from its current 30 days of supply, and “take advantage of today’s low prices to build more oil reserves”.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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