Total’s net adjusted profit fell 35% from 4Q19 to US$1.78 billion.
“The group is facing exceptional circumstances: the Covid-19 health crisis, which is affecting the world economy and creating major uncertainties, and the oil market crisis, with the sharp drop in oil prices since March,” Chairman and CEO Patrick Pouyanne said.
Total kept its first quarter interim dividend stable at €0.66 (US$0.7199) per share, saying it will be paid in cash exclusively.
It had planned to accelerate its dividend growth in the coming years, with a guidance of increasing the dividend by 5% to 6% per year.
Total said that as oil prices fell by more than 30% on average in the quarter, its cash flow slumped by 31% y/y to US$4.5 billion.
Although its oil and gas output rose by 5% to more than 3 million boe/d in the quarter, production for the year is expected to fall by at least 5% to between 2.95 million boe/d and 3 million boe/d, it said.
As the effects of lockdowns to curb the spread of the virus roiled markets, Total announced an action plan on 23 March to cut its planned investments for 2020 by more than 20% to US$15 billion.
The company said on Tuesday it will reduce its investments further to US$14 billion in 2020, while increasing cost savings to more than US$1 billion.
The company also announced ambitions to achieve net-zero emissions by 2050.
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