Total cuts investment target, keeps dividend amid pandemic

[PARIS] Total on Friday trimmed its investment target for 2020 after a sharp drop in third-quarter net profit though the French oil and gas producer maintained its dividend.

It cut its investment target to US$13 billion from US$14 billion and said it was keeping a lid on operating cost cuts, too.

It reported net income of US$202 million, down 93 per cent from a year earlier, but rebounding from a loss in the second quarter when it wrote down the value of assets. Adjusted net income fell 72 per cent to US$848 million.

Energy companies were hit hard by the impact of Covid-19 lockdowns and a collapse in fuel demand.

The price of Brent crude has largely stayed above US$40 a barrel since June, though Total on Friday said the market remained uncertain.

While rivals such as Shell and Eni have cut their dividends, Total has stuck with its payouts and said it would maintain a dividend of 0.66 euros (S$1.05) per share for the third quarter.

REUTERS