French supermajor Total reported a net loss of $7.2 billion for 2020, down from a profit of $11.27 billion for 2019, and said it will change its name to reflect its shift to renewable energy.
The company said that 2020 had presented it with the dual challenge of the pandemic, which destroyed oil demand, and the oil price crash, which at one point drove Brent crude prices below $20. The supermajor, however, noted its low production costs-as low as $5.1 per barrel of oil equivalent-that helped it weather the crisis.
The company said it will keep its fourth-quarter dividend unchanged at $0.80 per share (0.66 euro) and set a dividend of $3.20 (2.64 euro) for full-2020.
Looking forward, Total reaffirmed its commitment to a more renewable business mix, saying, "The Group affirms its plan to transform itself into a broad energy company to meet the dual challenge of the energy transition: more energy, less emissions. Thus, the Group's profile will be transformed over 2020-30 decade: the growth of energy production will be based on two pillars, LNG and Renewables & Electricity, while oil products are expecting to fall from 55% to 30% of sales."
With a view to its broader energy shift, Total's management will also propose to shareholders that the company changes its name to TotalEnergies at the annual shareholders' meeting in late May.
The French company has been at the forefront of the energy transition among Big Oil majors, growing in solar, wind, and EV charging through acquisition for several years now.
Most recently, the company bought a $2.5-billion stake of 20 percent in the world's largest solar farm developer Adani Green Energy, saying that the stake would help it hit its low-carbon energy generation targets. Total was also among the companies that won offshore wind development leases in the UK earlier this month.
By OPC Markets
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