French oil giant Total has affirmed it will cut some of its investments into Africa.
It’s unclear whether its investments into Ghana will suffer after it announced it plans to cut its investments by more than 10%, in its West Africa and North Sea operations.
[contextly_sidebar id=”F6uobS6SFskM4KsDfID6DRcD9XlXk4Kr”]Total has the largest network coverage in Ghana with not less than 210 service stations across country.
Its range of services runs into various industries including the Aviation, Bitumen and Mining industries as well as the manufacturing and roads sectors.
It’s latest move follows weak oil demand and prices on the world market.
The oil giant also seeks to reduce its workforce by some 2 000 people mainly through a hiring freeze.
Total in its financial report for 2014 says it will drastically cut in costs and investments after its net profit plunged in that year due to crude prices falling by more than 50% since June.
Total reported a 62% fall in net profit to $4.24bn last year compared with a year earlier, while revenue dropped 6.0% to $236.12bn, the group said in a statement.
The market-watched net adjusted profit, which excludes volatile elements, fell 10% to $12.84bn, after “oil prices fell dramatically in the second half of 2014, ending the year at $55 per barrel,” the statement said.
The group had a $7.1bn write down in its oil sands in Canada and shale oil operations in the United States, which will now undergo a restructuring.
The group still plans to increase production this year to just over 2.3 million barrels per day (bpd) compared with 2.15 million bpd in 2014.
By: Vivian Kai Mensah/citifmonline.com/Ghana