Total CEO Believes OPEC Will Support Oil Price as It Has Previously

   By Inti Landauro 
 

PARIS--Patrick Pouyanne, the newly appointed chief executive of French oil major Total SA (TOT), Wednesday said he expects OPEC will act on supply to support oil prices after the recent decline.

Mr. Pouyanne, who took over at the helm of the company after the tragic death of his predecessor, said in a conference call with analysts that Total sees "no reason to change its long term outlook". Mr. Pouyanne added that "OPEC will remain a market mover and will manage responsibly the resource and will eventually defend the oil price." The company expects the price of Brent to return to levels higher than at the start of October.

Total's Chief Financial Officer Patrick de la Chevardiere said the company's oil fields are over breakeven with Brent price at $80, though the company will focus on cost-cutting. He added the company will have enough cash to pay a dividend even at $80 a barrel, he said. The average price of the key Brent crude oil benchmark over the period fell by 8% during the third quarter, denting Total's earnings. Since then, the price has fallen by another 11%.

The company's CFO said Total loses about $1.5 billion of net profit for every $10 decline on the Brent oil price.

-Write to Inti Landauro at [e-mail]

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