Total is rebranding as ‘Total Energies’ in a move it said would underline its strategy to become a net zero emissions company
The French oil giant has also proposed net investments for the year at $12 billion.
Chief Executive Officer, CEO, of Total, Patrick Pouyanne described the proposal to shareholders as “historic”, setting out plans to change the group’s profile by 2030.
Oil products are expected to fall from 55 per cent to 30 per cent of sales in that timeframe, while the growth of energy production will be based on the two “pillars” of LNG and Renewables and Electricity.
Mr Pouyanne said Total has “always supported” the goals of the 2015 Paris Climate Accords and that, because of its activities, “the men and women of Total stand at the heart of this issue”.
Total set out some details last year of its strategy to go net zero for its own operations by 2050, as well as a three-stage plan to reduce emissions for energy products used by customers by 60 per cent.
The firm has been considered the fastest off the mark of the European oil majors, covering the most ground since announcing its low carbon goals.
It comes as the firm has bought a controlling stake in the massive Seagreen offshore windfarm off Scotland, and won seabed leases in the Crown Estate’s fourth round yin England.
Total also made headlines last month when it pulled out of the powerful American Petroleum Institute over climate concerns.
It comes as the group took net losses (IFRS) of $7.2billion for 2020, down from profits of $11.2bn the prior year, as it dealt with the “two major crises” of the Covid pandemic and the oil price crash.
Total took impairments of $10bn, “notably”, on Canadian oil sands assets, as a result.
On an adjusted basis, net profits stood at $4.05bn, down 66 per cent on $11.8bn in 2019.
Total made $1.5bn in asset sales in 2020, including the divestment of some non-core assets in the UK North Sea.
For 2021, the firm noted that oil prices have been above $50 since the year started however, the “environment remains uncertain and dependent on the recovery of global demand, still affected by the Covid-19 pandemic”.
Faced with these uncertainties, the company said net investments for the year are projected at $12bn.
Mr Pouyanne added: “2020 represents a pivoting year for the group’s strategy with the announcement of its ambition to get to Net Zero, together with society.
“The group affirms its plan to transform itself into a broad energy company to meet the dual challenge of the energy transition: more energy, less emissions.
“Thus the group’s profile will be transformed over the 2020-2030 decade