Total Trading Lower Following Protest Disruption
Greenpeace Protests On Tuesday
Shares in French energy producer and provider, Total, ranked the fourth-largest company of its kind globally, are trading 0.5% lower pre-market on Wednesday.
Shares suffered over the last 24 hours in response to news that the company has suspended oil operations at the group’s Dan bravo site in the Danish North Sea.
The company announced the move in response to the recent Greenpeace protest which took place there yesterday. Four activists swam over 500 meters and climbed onto the unmanned station.
After intercepting the protestors, Total announced that it has suspended operations for the time being. However, it did not say what level of output had been affected consequently.
Q2 Earnings Miss
Despite the news and the recent string of sales in recent days, Total share prices remain well above where they were on the date the company reported its Q2 earnings.
On July 30th, Total reported an EPS of -2.93 versus estimates of a -0.11 reading.
The company reported a drop in its bottom line of 94% versus the same period last year. This was linked to the massive drop in commodity prices and overall production levels amidst the pandemic.
Crude Sell Off Created Negative Impact
Total noted that Brent crude fell by around 60% at the lows in April, averaging less than $30 during the quarter.
As a result of the drop in demand over the quarter, Total limited its refinery utilization rates to below 60%. Marketing volumes were also lower by 30%.
However, Total noted that in Europe, marketing networks had recovered fIrmly since June. These moved back up to around 90% of pre-COVID levels.
In terms of net cash flows, Total reported a $3.6 billion figure, marking a 50% decrease on the same quarter last year.
Meanwhile, net debt was limited to an increase of $1.2 billion. This was linked to the success in total’s strategic attempt to help drive organic cash flow breakeven to less than $25 per barrel over Q2.
Total Capped By Bearish Trend Line For Now
Shares in Total continue to trade within a shallow bullish channel. However, they remain capped by the bearish trend line from 2020 highs for now.
To the downside, the main support to note is the 29.40 level. If the level is broken, focus will turn back towards the 2020 lows.
To the upside, should price break above the bearish trend line, the main resistance to note is up at the 39.32 level.