French energy giant Total needs to cover $12 billion shortfall due the crash in oil prices, CEO Patrick Pouyanne said, raising its previous forecast of around $9 billion
Total announced a plan in March to find cost savings, saying it said it expected a revenue shortfall of around $9 billion due to the crisis in the oil market. Pouyanne’s comments on Friday indicate it will have to make more far-reaching cost cuts.
“It is globally at least $12 billion that we believe we must cover through our action plan due to the crisis,” he told a shareholders’ general assembly meeting. Pouyanne told shareholders that the company will, however, continue to expand in the low-carbon energy sector after recent acquisitions, particular in Spain, which will give it 8.5 million gas and electricity customers in France, Spain and Belgium from next year.
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