Categotry Archives: Total

Why Rex Tillerson Stands Out

There’s an article in the Wall Street Journal about Rex Tillerson, ExxonMobil’s departing CEO and the man who Trump has picked for the role of Secretary of State.  The whole article is worth reading, but this bit caught my eye: Mr. Sechin came to like Mr. Tillerson because he was transparent and forceful in his communications—and was one of the few Western executives strong enough to push back against Mr. Sechin, said people familiar with the matter. … Mr. Putin, who […]

Major Comparison 2015

Similarly to what I did last year, now all the 2015 annual reports are out I thought it would be interesting to create tables showing revenues, profits, number of employees, and profit per employee for each of the majors. Despite the prolonged downturn, ExxonMobil is still doing very well as a company.  True, revenues are down and profits halved but any company that can make north of $16bn clear profit in the biggest slump in a generation must be doing […]

Total’s new strategy?

Via Phil in the comments under this post, I see that Total has bought a battery company for just under a billion Euros: ‘The combination of Saft and Total will enable Saft to become the Group’s spearhead in electricity storage’, said Patrick Pouyanné, Chairman and CEO of Total. ‘The acquisition of Saft is part of Total’s ambition to accelerate its development in the fields of renewable energy and electricity, initiated in 2011 with the acquisition of SunPower. Saft’s renowned technological […]

Roundup

In what is becoming a regular occurrence in that company, Mexican state-owned oil company PEMEX experienced another deadly explosion, this time in one of its petrochemical plants: Four more people have been found dead after last week’s explosion at a petrochemical plant in southeastern Mexico, raising the death toll to 32, state oil giant Pemex and Mexican plastic pipe maker Mexichem said in a joint statement on Sunday. The vinyl petrochemical plant in the Gulf coast state of Veracruz is a […]

Total surrender?

On Tuesday France’s Total presented a new organisation which purports to achieve its ambition of “becoming the responsible energy major”.  I must confess, if I thought Total’s strategy was rather unclear before, it is doubly so now. Total spent 2015 meeting the short-term goals set in response to the ongoing imbalances resulting from the fall in oil prices that began in June 2014. Yet even as it addresses these immediate challenges, the Group must also prepare for the medium and longer […]

Patrick’s posers

Last week Total’s CEO Patrick Pouyanne wrote an article in LinkedIn which is worth taking a look at: Investments by the major oil companies are being scaled back in response to falling prices, which means they will no longer be able to offset the natural decline of currently producing fields. This is a rather frank admission coming from the CEO of one of the major oil companies which has done just that.  But alas he doesn’t tell us why, if […]

Another major comparison

Now that each of the supermajors has turned in their 2015 Q4 and preliminary full-year reports, it is time for some commentary. ExxonMobil: IRVING, Texas – February 2, 2016 – Exxon Mobil Corporation today announced estimated 2015 earnings of $16.2 billion compared with $32.5 billion a year earlier. … Exxon forecast capital spending at around $23.2 billion this year, a 25 percent drop from 2015. Summary: Their profits have halved last year so they’re cutting CAPEX further for 2016.  They don’t need to […]

Total Failure

It must be “Pick on Total Week” here at Chez Jake: Total and Zarubezhneft have agreed to adjust their participation in the Kharyaga Production Sharing Agreement whereby Total will transfer a 20% interest together with operatorship to Zarubezhneft. This is a big development: Kharyaga was the only producing development which Total operated in Russia.  Once this deal goes through, Total will no longer operate anywhere in the country. “Russia remains a key country for the Group. Total has ambitious plans […]

Total Maintained

This might be encouraging for Total employees, but for their shareholders less so: French energy company Total expects a drop in 2015 results but does not plan to cut jobs as peer BP has done to weather currently low oil prices, its chief executive said in a radio interview on Tuesday. Patrick Pouyanne told Europe 1 that the group had the financial capacity to weather low oil prices. Pouyanne said Total like its peers was being hit by the fall […]

Brother, can you spare a dime?

French supermajor Total has issued an interesting press release: Total is raising approximately $1.2 billion of new debt financing through a structure combining the issue of non-dilutive cash-settled convertible bonds with the purchase of cash-settled call options to hedge Total’s exposure to the exercise of the conversion rights under the bonds. Why does Total need to borrow $1.2bn? Total intends to use the net proceeds of the issuance of the bonds for general corporate purposes. General corporate purposes, eh?  Would […]