PARIS – French energy giant Total reported today a 2020 net loss of US$7.2 billion (RM29.2 billion), compared with a profit of US$11.2 billion the previous year, as the coronavirus pandemic slashed demand.
The company, which was to change its name to TotalEnergies to reflect a move away from fossil fuels, said its adjusted net profit – which excludes exceptional and one-off items – plunged 66% in 2020 to just over US$4.0 billion.
“The year 2020 saw two major crises – that of the Covid-19 pandemic, which sharply affected global demand, and the oil crisis, which resulted in prices for Brent oil falling under US$20 a barrel in the second quarter,” Total boss Patrick Pouyanne said in a statement.
Oil prices even fell into negative territory at one point early last year as the pandemic saw governments worldwide impose harsh lockdown restrictions.
In the last few months, however, prices have recovered steadily, with Brent crude now back above US$60 after producers cut output and the global economy shows signs of a rebound.
Total said its oil and gas production was down 5.0% last year, while it also had to take charges of US$8.1 billion to cover asset writedowns.
“The group affirms its wish to transform into a multi-energy company so as to face up to the challenge of the energy transition – more energy, fewer (greenhouse gas) emissions,” Pouyanne said.
This change underlies the decision to rename the company TotalEnergies which will be put to a shareholder vote in May, he added. – AFP, February 9, 2021
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