2020 Results decryption by Jean-Pierre Sbraire, Company’s Chief Financial Officer

2020 was an exceptional year on several counts.

The health crisis affected us all personally, and led to an economic crisis which saw the price per barrel plunge to unprecedented levels, slumping an average 35% from 2019.

In addition to the oil price volatility, demand for petroleum products fell by a record 9%.

With adjusted net income of $4.1 billion, cash flow of almost $18 billion and a low organic pre-dividend breakeven, at $26 a barrel, our 2020 results, despite the sharp falls due to the crises, are stronger than those of our peers.

I would like to take this opportunity to thank all our employees for their dynamic response to the situation.

In an exemplary way, and with the utmost respect for all health precautions, we managed to ensure continuity in our operations and the services that are vital to our customers.

As early as March, we demonstrated our adaptability with the rapid deployment of an extensive cost-cutting plan.

Priority was given to controlling outgoings both in capital spending and in production costs, which remain lower than those of our main rivals, as well as generating cash, which is particularly important during a crisis.

We managed to cut costs by over $1 billion in 2020, and we must pursue this effort in 2021, aiming for $500 million of new savings, because the market remains very uncertain.

Furthermore, with a healthy gearing ratio under 22% at year-end 2020, Total has a solid financial position.

2020 will also be remembered as the year Total made a major step forward in its response to the climate challenge, setting itself an ambition to get to net zero carbon emissions across all its activities by 2050, together with society.

To show that the Group is serious about pursuing its transformation, we did not cut our investments in renewables and electricity, which amounted to $2 billion in 2020.

This accelerated implementation of our renewables strategy, adding ten gigawatts of capacity to our portfolio.

These activities are central to our strategy and are changing the face of Total as it turns itself into a broad energy Group.

We must keep our focus in 2021, and concentrate on our four priorities —HSE, operational excellence, cost reduction and the generation of cash!