World News

French energy group Total steps up cost cuts, suspends buybacks

PARIS (Reuters) – French energy group Total <TOTF.PA> announced plans on Monday to step up cost cuts and suspend its share buyback program in order to deal with a slump in oil prices.

Total CEO Patrick Pouyanne said that given oil prices at $30 per barrel, Total would now target organic capital expenditure cuts of more than $3 billion.

The company will also target $800 million in 2020 savings on operating costs compared to 2019, instead of the $300 million previously announced, and suspend its share buyback program.

(Reporting by Sudip Kar-Gupta; editing by Jason Neely)