Chairman and CEO of Total
discusses Total’s 2017 results
Q. How was our performance in 2017 ?
A. Total’s results are up this year, they’re up almost 30%, you can say they are good.
Over 10 billion dollars, as a result of all our teams’ efforts and dedication.
It proves that our strategy to adjust to lower oil prices and to this volatile environment, has worked.
This strategy relies on a strong discipline in terms of spending, and on the growth of our output.
Q. How did Upstream and Downstream contribute ?
A. Upstream has had a good year, with output up 5%,
From 2014 to 2017, our output has grown by 25%, and the trend will continue, as we anticipate an almost 6% output growth next year, and an average of 5% per year until 2022.
Our Upstream results are up 80%, and I’m happy to stress that this is the best performance among the majors.
The Group’s strategy is based on being active all over the value chain. For the past three years, our Downstream delivered 7 billion dollars of cash flow, year after year, that’s a strong improvement over the previous years.
Our Downstream segment is strong, it is the most profitable among the majors.
We must keep up with these efforts, and combine discipline with growth projects.
Yes, Downstream is fully part of Total’s strategy, and we count on their results for Total to keep growing going forward.
Q. With the barrel trading at around 70 USD, is discipline still de rigueur ?
A. The oil price keeps moving, markets haven’t stabilized yet, recently, the Saudi and Russian energy minister said that the Opec and non-Opec deal would have to be extended through 2019.
This proves that the market hasn’t achieved its balance yet.
At Total, we anticipate a 50 to 60 dollar barrel, and we manage the company as if it were at 50.
That means a strong discipline in terms of spending, it’s crucial in a cyclical industry.
Q. What’s next in 2018 ?
A. 2017 has also allowed us to prepare the future, for instance by acquiring Maersk Oil, the Danish champion.
One of our challenges for 2018 will be to integrate these acquisitions we made, like Maersk Oil, like the assets of our Alliance with Petrobras, which we recently closed, and like Engie’s liquefied natural gas assets.