Total to Cut Costs, Suspend Buy-Back Plans as Oil Prices Fall
Total SA (TOT) said Monday that it is implementing an “action plan” as a result of the plunge in oil prices to around $30 per barrel.
The measures include organic capital expenditure cuts of more than $3 billion and a reduction of its 2020 net investments to less than $15 billion, the oil company said in a statement.
In addition, the oil company said it will suspend its $2 billion buy-back program planned for this year, and will increase its operating cost savings for the year to $800 million from $300 million.
The oil company’s Strong Buy consensus rating consists of 8 Buy ratings and 1 Hold rating. Analysts price the shares at an average price target of $54.04, reflecting a potential upside of 113% in the next 12 months. (See Total’s stock analysis on TipRanks).
3 Top Defensive Plays for the Bear Market
Goldman Sachs: 3 Stocks to Snap up on the Dip
Amazon, Facebook among Wedbush’s Best Ideas for 2020