Total suffers $7.2-billon 2020 net loss on lower prices, production, throughputs

Total SE had a 2020 net loss of $7.2 billion, compared with 2019 earnings of $11.3 billion. Its fourth-quarter 2020 earnings fell 66% to $891 million from $2.6 billion in the same period a year earlier but were up sharply from third-quarter 2020’s $202 million.

Exploration and production adjusted net operating income was $1.1 billion in fourth-quarter 2020, compared with $2 billion a year ago due to the sharp drop in oil and gas prices and lower production. The full-year total’s were $2.4 billion for 2020 versus $7.5 billion in 2019 for the same reasons.

Total’s hydrocarbon production was 2.84 million boe/d in fourth-quarter 2020, down 9% year-on-year, comprised of:

-5% due to compliance with Organization of Petroleum Exporting Countries and others (OPEC+) quotas, notably in Nigeria, the UAE, and Kazakhstan, as well as voluntary reductions in Canada and disruptions in Libya.
-1% due to portfolio effect linked to the sale of UK assets and Block CA1 in Brunei.
+3% due to ramp up of recently started projects, notably North Russkoye in Russia, Tempa Rossa in Italy, Johan Sverdrup in Norway, Iara in Brazil, and Culzean in the UK.
-3% due to natural production decline.
-3% due to maintenance and unplanned outages, notably in Norway.

Hydrocarbon production was 2.87 million boe/d for the year 2020, a decrease of 5% compared with the previous year, comprised of:

-5% due to compliance with OPEC+ quotas, notably in Nigeria, the UAE, and Kazakhstan, as well as voluntary reductions in Canada and disruptions in Libya.
+5% due to startup and ramp-up of the projects noted earlier.
-3% due to natural production decline.
-2% due to maintenance and unplanned outages, notably in Norway.

Hydrocarbon production for LNG in fourth-quarter 2020 decreased by 15% compared with a year earlier, notably due to the shutdown of Snohvit LNG after a fire at end-September 2020. Total LNG sales increased 12% in 2020 compared with 2019 thanks to the startup of three trains at Cameron LNG in Louisiana, the ramp-up of Yamal LNG in Russia and Ichthys LNG in Australia and increased trading activities.

The company’s average LNG sales price rebounded by 37% in the fourth quarter compared with the previous quarter due to the seasonality of demand and the delayed impact of higher oil prices in third-quarter 2020 on long-term LNG contracts.

Refinery throughput was down 16% for fourth-quarter 2020 and 23% for the the full year. Monomer production increased 4% and 6% for the quarter and full year, respectively, while polymer production grew 10% in fourth-quarter 2020 versus fourth-quarter 2019 and was stable for the full year.

Total more than doubled its gross installed renewable power generation capacity during the year, reaching 7 Gw by the end of the fourth quarter, notably thanks to the acquisition in India of 50% of a 3-Gw portfolio from the Adani Group.