In its Q4 release, the Renewable & Electricity division's results was mentioned first, and of the 8 bullets highlighting TOT's progress, 5 began with 'acquired.' Meanwhile, much of its green initiatives spending is focused on strategic acquisitions of proven technologies rather than greenfield developments. Despite having renewable projects dominate its marketing material, TOT sill expects most of its energy generation through 2030 to be powered by oil and natural gas, albeit pivoting towards more expensive LNG projects. However, unlike some of its competitors, the company's management understands what it was brought on to go - run an energy company. Source: Company Projections, Author Estimates Green Energy Shift Largely Focused on AcquisitionsĪlong with a new name, Total plans to expand on its green energy initiatives, with an annual spend of $2B/year. The additional $3B of cash would, in the meantime, reduce gearing to 24%. Thus, if Brent holds at current levels for the remainder of the year, Total will be able to fully fund its shareholder distribution without resorting to debt. Calculating the impact of higher oil prices - TOT estimates a cash flow impact of $3.2B for every $10/b change in oil prices - leaves the company with nearly $3B of extra cash. Growing Cash Flows: Management projects 2021 capital spending of $12B, down $1B from the prior year.Source: Total 2020 Earnings Results Presentation Nevertheless, TOT has to exercise capital discipline even as oil prices begin to rebound to achieve its long-term 20% gearing target. Gearing rose to 27% as a result, which is still below most of its peers. Maintain dividend: Unlike its European rivals RDS.A and BP, Total did not cut its dividend last year, even as it had to finance the actual distributions with debt.Both are smart moves: Adani has been generating steadily growing cash flows, and exiting oil sands (where operations are not profitable at current commodity prices anyway) should score TOT some 'brownie points' with its environmentally conscious investors. The company acquired a 20% stake in the Indian solar developer Adani Green Energy, and wrote down $10B worth of its Canadian oil sands assets. Shift to carbon neutrality: Highlighting its transition to a carbon-neutral company, Total will rename itself TotalEnergies and reshuffle its asset portfolio.Earnings beat analysts' expectations on revenue and cash flow, which was well received by investors, and the stock rose following the release.

Tuesday morning, Total SE ( TOT) reported FY20 results and provided its outlook for this year. Earnings Highlights - New Name, Growing Cash Flows

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