(AOF) – TotalEnergies announced yesterday the allocation of an exceptional bonus to its employees and the immediate opening of wage negotiations. This Friday, the representative of the CFDT union Grégory Caillon of the oil group announced that a compromise had been found overnight with management for a 7% wage increase, but without the CGT, reports BFM Business. This representative ensures that “the CFDT negotiation team gives a favorable opinion to the measures which are on the table”.
The strike underway since the end of September in several refineries and fuel depots of the oil firm has led to gasoline shortages in many French regions. The French refineries of ExxonMobil (Esso) are also on strike. Around 700,000 barrels per day of refining capacity are currently out of service in France.
Capped for high salaries, this bonus of one month’s salary will be paid to employees of all companies 100% owned by TotalEnergies, as well as to employees of companies more than 50% owned if approved by their governance bodies. .
On the other hand, the CGT does not yet find the latest advances sufficient: “The proposals that are on the table are largely insufficient”, estimated Alexis Antonioli, CGT general secretary of the TotalEnergies Normandy platform, not hesitating to speak of a “masquerade “, reports BFM Business. The CGT is asking for a 10% increase this year, including a 7% salary increase and 3% for wealth sharing, against 3.5% obtained at the start of the year.
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Key points
– Integrated group around energy, 3
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world oil company, 2nd gas company;
– Activity of $141 billion organized into 4 branches: 45% for marketing & services (distribution networks, etc.), 40% in refining & chemicals, 11% in renewables, gas and electricity, then exploration- production ;
– Economic model of transformation in ten years into a multi-energy group, producer of oil & LNG (liquefied natural gas), renewable energies & electricity and hydrogen & biomass;
– Open capital (6.4% held by employees), the 12-member Board of Directors being chaired by Patrick Pouyanné, also Chief Executive Officer;
– Solid balance sheet with $104 billion in equity and $17 billion in free cash flow and a debt ratio of 9.8%, well below the 20% target.
Challenges
– 2020-2030 strategy to respond to the challenge of energy transition, more energy, – emissions: 30% growth in energy production, 50% powered by renewable electricity, 50% by LNG , the share of oil dropping from 55 to 30%, change in the breakdown of sales – 30% oil products, 50% gas, 15% electricity and 5% biomass and hydrogen / discipline in investments – $13 to $15 billion per year over 2022-2025, of which 50% allocated to new energies – renewables and electricity – and 50% to natural gas;
– Innovation strategy led by One Tech, endowed with 850 M$ for 18 R&D centers: 3 hubs: industrial, development and support / 5 programs: production, CO2 and sustainability, operational efficiency of upstream, downstream & polymers, fuel and lubricants / recycling and biofuels / a digital factory to generate $1.5 billion in savings by 2025;
– Environmental strategy: by 2050, carbon neutrality for group operations, neutrality of products used by customers in Europe, reduction of 60% or more in the carbon intensity of products used by customers outside Europe;
– 4 axes: growth in the gas value chains (natural, biogas and hydrogen), in low-carbon electricity (annual envelope of $1.5 to 2 billion), in low breakeven oil and in biofuels and, finally, in activities contributing to carbon neutrality (natural wells, forests, etc.) / solar and renewables: production capacity of 25 Gw by 2025 / carbon fund endowed with $400 million to be invested by 2025;
– In renewables & electricity, capacity portfolio of 35 GW by 2025, including +20 GW secured by long-term purchase contracts;
– Acceleration of the energy transition with equity investments in 2 Qatari and Indian projects (LNG and hydrogen) and in Clearway, 5
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American Renewable Energy;
– Industrial excellence in oil production with a breakeven at -$20/bbl.
Challenges
– Sensitivity to the price of a barrel of oil and to the dollar, an increase of $10 per barrel having an impact on operating profit of $2.7 billion; a decline of $10 affecting it by $100 million;
– Exposure to geopolitical risks in Africa (30% of the group’s production);
– Impact of the Russia-Ukraine war: stoppage of capital contributions to new projects and the Arctic project, stoppage of oil and diesel purchases, maintenance of stakes in Novatek (19.4%), Yamal (20%), Arctic LNG (10%) and Terneftegaz (49%) and maintenance of LNG supply from Yamal;
– After a virtual tripling of the net result in 1
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semester, 2022 outlook for increased hydrocarbon production with high selling prices, renewable and electricity capacities above 16 GW thanks to dedicated investments of $3.5 billion (a quarter of total investments) , a downstream contribution (petrochemicals, biofuels and electric mobility) of €6 billion to free cash flow;
– Payment of 2 interim dividends for 2022 of €0.69 and maintenance of share buybacks, of $2 billion on 3
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quarter, triggered according to the formula 40% of the cash flow generated by hydrocarbon prices above $60 per barrel.
Growing global demand
The IEA (International Energy Agency) estimates that global demand should stand at 99.4 Mb/d (million barrels per day) for 2022, a level revised slightly upwards due to stronger growth. stronger than expected in March and April. However, this remains 1 Mb/d below 2019 levels. From 2023 the IEA forecasts that global oil demand should exceed pre-Covid pandemic levels, driven by Chinese demand. The latter has been strongly affected by the serious disruptions linked to Covid-19 this year. Next year, the rebound in Chinese demand will more than offset a slowdown in OECD countries. In the medium term, the strong recovery in air traffic is supporting oil demand, with an increasingly evident dynamic in air travel in Europe and North America, underlines the IEA.