France-based Total said Tuesday its fourth-quarter results “rebounded” as oil prices stabilized, while also revealing plans to change its name to focus on LNG and renewable power.
Total’s adjusted net income declined by 51 percent to $1.3 billion in the fourth quarter, improving on the previous quarter and beating analysts’ expectations.
Total attributed the decline to lower oil, gas, and LNG prices when compared to the last year, and the effects related to the Covid-19 coronavirus pandemic.
For the full-year of 2020, the firm logged a $7.2 billion net loss hit by $10 billion of impairments.
On the other side, Total’s 2020 LNG sales increased 12 percent to 38.3 million tonnes.
Total said LNG sales rose thanks to the start-up of three trains at Cameron LNG in the US, the ramp-up of Yamal LNG in Russia and Ichthys LNG in Australia but also an increase in trading activities.
The energy giant said it would rebrand as TotalEnergies as it plans to reduce oil products to a third of its sales from over half now in the next decade.
“2020 represents a pivoting year for the group’s strategy with the announcement of its ambition to get to net zero, together with society. 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,” CEO Patrick Pouyanne said.
In addition, Total will base the growth of its energy production on two pillars, LNG and renewables & electricity, while oil products would fall to 30 percent of sales.
“To anchor this transformation, the group will propose to its shareholders at the annual general meeting on May 28, 2021, changing its name to TotalEnergies. They will hence have the opportunity to endorse this strategy and the underlying ambition to transition to carbon neutrality,” Pouyanne said.