Total Books $8.1 Billion Impairment in 2Q
29 Juillet 2020 - 7:27PM
Dow Jones News
By Mauro Orru
Total SE said Wednesday that it booked exceptional asset
impairments of $8.1 billion in the second quarter of 2020 amid
revised price assumptions for the coming years and a review of oil
assets.
The French oil-and-gas company said the impairments included $7
billion on Canadian oil-sands assets, harming its gearing ratio by
1.3%.
The company anticipates Brent prices at $35/b in 2020, $40/b in
2021, $50/b in 2022, and $60/b in 2023, with gas prices adjusted
accordingly.
The short-term price revision brought an impairment charge of
$2.6 billion, with the remaining $5.5 billion due to the review of
"stranded" oil assets, "with reserves beyond 20 years and high
production costs, whose overall reserves may therefore not be
produced by 2050," the company said in a statement.
Total said only its Canadian oil-sands projects Fort Hills and
Surmont fall under this category.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
July 29, 2020 13:12 ET (17:12 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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