French oil giant Total to present third quarter results

French multinational energy company Total SE will release its third quarter earnings today.

Although the supermajor is anticipated to have positive earnings for the quarter, it faces challenges in the quarter ahead. A second global wave of COVID-19 cases has driven down oil prices, while domestic demand will be significantly affected by France’s newly reinstated national lockdown. Simultaneously, some Muslim-majority countries have called for a boycott on French companies and on $100 billion of French exports, which threatens both short term demand as well as extraction operations abroad.

Expect Total SE to continue to underperform in the short and medium-term as price and demand volatility continue. While Total has significant investments across several Muslim-majority countries, anti-France sentiment is unlikely to affect export-oriented commodities as significantly as public-facing consumer products. In the long-term, expect Total to maintain growth despite new estimates the world may reach “peak oil” by 2030. Total has significantly re-oriented its portfolio, becoming France’s second-largest solar developer, and plans to be carbon neutral with renewables comprising 40% of its sales by 2050.