Oil Giant With a Head Start in the Energy Transition

Oil Giant With a Head Start in the Energy Transition

French giant Total may be the best of a bad bunch in the unloved oil-and-gas sector.

The company weathered a traumatic year for the oil industry better than European peers Shell and BP , annual results released Tuesday confirmed. The sector isn't for the faint of heart as the world transitions to cleaner forms of energy, but Total seems well set up for a range of scenarios.

The company is the second-largest producer of liquefied natural gas, and added significant finds to its oil and gas reserves last year. Yet it is also developing a new-energy business. It has converted some refineries to biodiesel and is investing in renewable assets. It has trading and retail services, and is dabbling in batteries, electric-vehicle charging, hydrogen and carbon-capture technologies.

So much activity could raise the risk of poor delivery, but Total's results have been steady so far. It has the advantages of low production costs and a solid balance sheet. The company has been buying