Total Plans $5 Billion of Asset Sales in 2019/20

French energy giant Total S.A (TOT) said early on Thursday that it plans to divest $5 billion of assets in high breakeven areas of the business while reporting adjusted earnings that missed guidance in the second quarter as natural gas prices plunged in Europe and Asia.

Revenue from sales fell to $45.20 billion during the three months that ended June 30, from $46.10 billion a year ago, the company said in its earnings statement. That result, however, beat the $44.61 billion average analyst estimate compiled by Capital IQ.

Group turnover declined as a 9% year-on-year jump in production to 2.96 million barrels of oil equivalent per day and the same percentage-point increase in the average Brent price during the second quarter failed to outweigh the impact of a 36% plunge in natural gas prices in Europe and 26% in Asia.

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Adjusted diluted earnings also fell, down to $1.05 per share from $1.31 per share a year earlier and lagged the $1.15 market forecast.

As part of the company’s strategy of divesting high breakeven assets such as the recent sale of mature assets in the UK North Sea, Total said active portfolio management would continue with the sale of $5 billion of assets over the 2019/20 period, the majority of which would come from exploration and production.

“Since the start of the third quarter, Brent has traded above the context of renewed OPEC-plus quotas and uncertainties about the production cycle in Libya, Venezuela, and Iran,” the company said in the statement. “The environment remains volatile, with uncertainty about hydrocarbon demand growth related to the outlook for global economic growth.”