Total makes spending cuts due to low oil price

23 March 2020 (Last Updated March 23rd, 2020 12:28)

Total makes spending cuts due to low oil price
Total will reduce its capital spending due to the coronavirus downturn. Credit: Total.

Oil and gas company Total has revealed plans to cut spending, costs and share buybacks throughout 2020.

CEO and chairman Patrick Pouyanné informed staff of the French company about spending changes on Thursday. Capital expenditure (capex) will fall by more than one-fifth, to less than $15bn. The company said the saving were mainly from short-cycle, flexible expenditure, which it could negotiate quickly.

It will cut $800m from 2019 operating costs, $500m more than was previously planned for 2020.

Total also planned to buy back more than $2bn-worth of shares over 2020. It has now suspended the buyback, having purchased $550m of shares.