French Energy Group Total Steps Up Cost Cuts, Suspends Buybacks

French energy group Total (TOTF.PA) announced plans on Monday to step up cost cuts and suspend its share buyback program in order to deal with a slump in oil prices.

Atlantic Post

March 23, 2020

1–2 minutes

French Energy Group, Total, Total E&P

FILE PHOTO – The logo of French oil giant Total is pictured at a petrol station in Laplume, France January 16, 2020. REUTERS/Regis Duvignau

PARIS (Reuters) – French energy group Total (TOTF.PA) announced plans on Monday to step up cost cuts and suspend its share buyback program in order to deal with a slump in oil prices.

Total CEO Patrick Pouyanne said that given oil prices at $30 per barrel, Total would now target organic capital expenditure cuts of more than $3 billion.

The company will also target $800 million in 2020 savings on operating costs compared to 2019, instead of the $300 million previously announced, and suspend its share buyback program.