The factors in favour of a rise in the Total share price:
In order to buy Total shares online, it’s essential that you be convinced that this company is of real value. As you will quickly come to realise, as an asset, Total presents numerous advantages. Here are the company’s main advantages.
First of all, the company’s position on the world oil market is of course of one its strengths. It should be noted that Total is part of the five biggest oil companies in the world. It’s also well positioned in the natural gas market and has been able to develop its solar energy production activity enough to become number two worldwide thanks to Sun Power subsidiary.
Investors who follow Total stock also benefit from interesting visibility in terms of the company’s oil activities, seeing as it regularly discloses its production targets by number of barrels per annum. This way, you can see for yourself that production has strongly increased in 2017 in comparison with previous years along with an accelerated growth rate in 2016. Total doesn’t seem concerned by a possible decrease in production in 2018 or the years to come.
Regarding the oil sector, the Total company has revealed one of the highest replacement rates on the market with respect to its reserves. As a matter of fact, this rate was of 107% in 2017 which means that the company’s production continues to grow and that demand remains strong.
Another one of the company’s major advantages involves the distribution of its production activities. The company benefits from a good balance of production with 33% of its oil being produced in Angola and Nigeria and some other 14% in Norway. This way, it protects itself against eventual economic constraints generated by geopolitical developments.
Recently, Total has established an industrial reorganisation of its activities which should pay off in the years to come. Thus, it has developed two new lines of business, namely its Gas Renewable & Power subsidiary which specialises in natural gas, renewable energy and energy efficiency as well as Total Global Services which regroups several support activities. Additionally, it was decided that as part of this reorganisation the holding company should now refocus on its key strategic functions.
It should be noted that Total, unlike other big oil companies, behaves particularly well when facing price cuts of crude oil. In such cases, the company practices decreasing important operational costs which allows it to protect its profits and thus keep its investors satisfied.