Total is an international integrated oil and gas company. Co. engages all aspects of the petroleum industry, including Upstream operations (oil and gas exploration, development and production, and LNG (Liquefied Natural Gas)) and Downstream operations (refining, petrochemicals, specialty chemicals, marketing and marketing and trading and shipping of crude oil and petroleum products). In addition, Co. is engaged in the coal mining and power generation sectors. Co.'s worldwide operations are conducted through three business segments: Upstream, Refining & Chemicals, and Marketing & Services.
In our opinion TOT does not have an economic moat. It relies on superior execution for success. Total is too high up the global cost curve and lacks meaningful exposure to high-quality U.S. shale resources or other cost competitive growth options. TOT’s downstream footprint is geographically disadvantaged and is far too exposed to Europe to be anything but a complete drag on creating value for the foreseeable future
TOT is managing costs. Lowering commitments to capital spending and oil and gas exploration are a few actions taken. Solid reserve replacement performance offers promise. Total replenished 100% of the oil and gas pumped in 2014. That suggests a bright future ahead, once price realizations perk up. Total's oil and gas reserves are the backbone of the company. Total return potential to 2018-2020 is bright as a result, and the company's strong finances. This stock is good fit for patient, conservative investors. The dividend is paid in euros, making for a weak U.S. translation these days.
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A strong market presence coupled with integrated operations
Strong R&D capabilities
Leadership position in refining and marketing
Litigations against TOTAL
Focus on solar energy Establishment of Jubail Refining and Petrochemical Company
Strong project pipeline
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