Energy Company of the Year—large cap
Total’s recent Q318 results reflected its continuing success across the energy value. Its exploration and production (E&P) activities saw an 85pc increase in revenues, while production, net of divestments, was up by well over 8pc. The firm has also reduced its breakeven oil price to below $50/bl.
Its roster of new 100,000 bl/d of oil equivalent (oe) projects is extensive, from Yamal LNG trains 1 and 2 in Russia to Fort Hills in Canada, from Vaca Muerta shale in Argentina to Kaombo North in Angola, as well as the giant Ichthys LNG plant in Australia. By the end of the year and going into 2019, those will be joined by
projects such as two more Yamal trains, Kaombo South, Halfaya 3 in Iraq, Egina in Nigeria, Iara 1 in Brazil, Culzean in the UK North Sea and Norway’s much-anticipated Johan Sverdrup field.
In the gas and LNG sector, Total is already benefitting from strong LNG trading performance boosted by the acquisition of Engie’s portfolio. And it has made one of the largest commitments to gas-to-power among its peers with its deal to buy power firm Direct Energie. Its Indian LNG regasification terminal joint venture
is targeting that growing market’s gas-for-transport sector. The firm may next year take FID on two more trains at the Cameron US LNG export facility, while a proposed seventh train at Nigeria LNG is currently undergoing a FEED study.
Total’s refining margins climbed as high as $50/bl in August, as its access to lower cost ethane, compared to more expensive naphtha, pays dividends. The firm continues to invest in downstream facilities, including the new Satorp cracker in Saudi Arabia and an upgrade of its Antwerp refinery to make it ready for the new IMO 2020 regulations.