Total’s net profit falls 35% in the first quarter as oil prices slide

Total on Tuesday posted a significant fall in first-quarter net profit, as oil prices tumbled to historic lows following a drop-off in demand due to the coronavirus crisis. The French energy major reported Tuesday that first-quarter net profit came in at $1.8 billion, down from $2.8 billion over the same period last year, reflecting a fall of 35%.

Analysts polled by Refinitiv had expected first-quarter net profit to come in at $1.4 billion. The company’s board also confirmed that its first-quarter dividend would be 0.66 euros per share, stable on the same period last year. It proposed an option to receive the 2019 final dividend in cash or in new shares of the company with a discount, subject to approval at the shareholders’ meeting on May 29.

Shares of Total, which are down more than 38% year-to-date, rose nearly 7% shortly after Tuesday’s opening bell. It comes as a global public health crisis continues to hit energy markets hard, resulting in a world awash with oil but with few places to put it.

The Covid-19 outbreak has meant countries across the globe have effectively had to shut down, with many governments imposing draconian restrictions on the daily lives of billions of people. It has led to an extraordinary demand shock in energy markets, with worldwide mobility brought close to a standstill.

International benchmark Brent crude traded at $29.04 per barrel during morning deals, up over 6.6%, while U.S. West Texas Intermediate stood at $22.32, almost 10% higher. Brent futures extended gains for the sixth consecutive session and WTI futures were higher for the fifth day amid heightened expectations that fuel demand would soon start to recover.

U.K.-based energy giant BP, as well as U.S. majors Chevron and Exxon Mobil, all maintained their dividend to shareholders through the first three months of the year.

Total’s net profit falls 35% in the first quarter as oil prices slide, CNBC, May 5