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TOTAL (TOT) to Benefit From LNG Focus and Diverse Assets
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TOTAL SE’s diverse assets across the globe, systematic investments, cost-reduction initiatives, expanding renewable assets portfolio and start-up of new projects will help to boost its performance.
TOTAL has the minimum exposure to the mature North American region among the oil super majors. The company’s upstream assets have lower natural decline rates and longer productive lives, which give TOTAL a significant competitive edge over peers. The company firmly focuses on investing in quality assets in the rest of the world.
TOTAL continues to make strategic acquisitions and agreements with the existing operators in high-potential areas and divest assets that are not in sync with long-term objectives. In first-half 2020, it acquired $2.5 billion worth of assets and sold assets valued at $957 million.
TOTAL strives to be a net-zero carbon emission company by 2050 and has been taking steps to achieve the target. Its annual planned investment in low-carbon electricity generation is maintained in the range of $1.5-$2 billion. It is working to expand the LNG portfolio globally. The company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.
Preserving liquidity is the key amid the unexpected drop in oil prices and decline in global demand due to the novel coronavirus outbreak. TOTAL implemented cost-saving initiatives that are aimed to lower operating costs by more than $1 billion from 2019 levels.
Headwinds
TOTAL’s global presence exposes it to competition from national and international oil and gas majors. The company has to compete with ExxonMobil (XOM - Free Report) , Royal Dutch Shell , Chevron Corporation (CVX - Free Report) and BP p.l.c. for acquiring assets and licenses for the exploration and production of oil and natural gas, as well as the sale of manufactured products derived from crude and refined oil.
Price Performance
In the past three months, shares of TOTAL have gained 10.2% against the industry’s 0.8% decline.
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TOTAL (TOT) to Benefit From LNG Focus and Diverse Assets
TOTAL SE’s diverse assets across the globe, systematic investments, cost-reduction initiatives, expanding renewable assets portfolio and start-up of new projects will help to boost its performance.
However, this Zacks Rank #3 (Hold) stock has to face strong competition from other global integrated oil and gas companies.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tailwinds
TOTAL has the minimum exposure to the mature North American region among the oil super majors. The company’s upstream assets have lower natural decline rates and longer productive lives, which give TOTAL a significant competitive edge over peers. The company firmly focuses on investing in quality assets in the rest of the world.
TOTAL continues to make strategic acquisitions and agreements with the existing operators in high-potential areas and divest assets that are not in sync with long-term objectives. In first-half 2020, it acquired $2.5 billion worth of assets and sold assets valued at $957 million.
TOTAL strives to be a net-zero carbon emission company by 2050 and has been taking steps to achieve the target. Its annual planned investment in low-carbon electricity generation is maintained in the range of $1.5-$2 billion. It is working to expand the LNG portfolio globally. The company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.
Preserving liquidity is the key amid the unexpected drop in oil prices and decline in global demand due to the novel coronavirus outbreak. TOTAL implemented cost-saving initiatives that are aimed to lower operating costs by more than $1 billion from 2019 levels.
Headwinds
TOTAL’s global presence exposes it to competition from national and international oil and gas majors. The company has to compete with ExxonMobil (XOM - Free Report) , Royal Dutch Shell , Chevron Corporation (CVX - Free Report) and BP p.l.c. for acquiring assets and licenses for the exploration and production of oil and natural gas, as well as the sale of manufactured products derived from crude and refined oil.
Price Performance
In the past three months, shares of TOTAL have gained 10.2% against the industry’s 0.8% decline.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>