The local subsidiary of the French oil services giant, TOTAL, posted a net profit of $ 8 million in the first quarter of the current year, compared to a profit of $ 10 million during the similar period in 2019. A loss caused mainly by the decrease in turnover.
Total Gabon announced a net profit for the first quarter of 2020 established at 8 million dollars, against a profit of 10 million a year earlier over the same period, mainly impacted by a decrease in turnover set at 113 million, lower by 31 % compared to the first quarter of 2019, itself impacted by the continuous fall in the selling price during the quarter.
In fact, the average selling price of the quality of crude oil marketed by Total Gabon amounted to $ 40.6 per barrel in the first quarter of 2020, down 30% compared to the first quarter of 2019.
In addition to the drop in the price of Brent, the price differential linked to the quality of crude oil produced by Total Gabon also deteriorated following the trend started at the end of 2019. The drop in the selling price was particularly significant in March.
Regarding production, the share of crude oil (operated and non-operated) linked to Total Gabon’s holdings amounted to 27,900 barrels per day in the first quarter of 2020, down 13% compared to the first quarter of 2019. According to the company, this decrease is mainly explained by: a partial unavailability of the facilities linked to compression and silting problems in the non-operated sector of Grondin, the natural decline of the fields, partially offset by the contribution of the first quarter well intervention campaign on the operated sector.
Following the double health and oil crisis, the company communicated, on April 20, on the implementation of an action plan aimed at substantially reducing its expenses and investments for fiscal year 2020. This plan has not been modified and its implementation is proceeding as planned. Thus, in the first quarter, oil investments within the subsidiary amounted to $ 11 million, a significant drop compared to the first quarter of 2019. “They mainly include the installation of a gas pipeline intended initially to improve gas-lift activation of wells in the Grondin sector. Its entry into service has been postponed due to the shutdown of passenger transport in Gabon, ” the company concluded.
