Abstract
Total is France's largest corporation as well as the fourth largest publicly-traded integrated oil and gas company in the world. Total is involved in three major segments: downstream, upstream, and chemicals. In the following report, we carefully analyzed these three business segments to determine whether or not Total should vertically integrate, diversify, divest, or just remain put. Our performance measures (EBITDA margin, ROA, net income and operating margin, etc.) revealed that upstream is profitable and generating the most value, while downstream and chemicals are maintaining profitability, however could reduce costs and increase efficiencies. As a result, we recommend that Total remain put and continue pursuing its corporate strategy: to remain one of the most dynamic and successful energy groups in the world today.In the downstream segment, Total specifically deals with trading, shipping, refining and marketing of petroleum products, automotive fuels and LPG. By using measures such as EBITDA margin, operating and net income margin, and ROA, it is clear that the overall downstream segment is profitable and efficient.
