TotalEnergies' Q3 earnings soar on high gas prices
Adjusted net profit at France's TotalEnergies soared in the third quarter to $4.8bn, from $848mn a year earlier, on the back of soaring gas and power prices in Europe and Asia, the company reported on October 28.
Core earnings more than doubled to $11.2bn, while cash flow from operations increased 30% to $5.64bn. TotalEnergies achieved the greatest gains at its integrated gas, renewables and power business, where earnings increased to $1.61bn from $285mn a year earlier. Upstream earnings also leapt up to $2.73bn from $801mn.
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TotalEnergies said it expected gas prices to remain high in Europe and Asia through to the second quarter of 2022, as demand stays robust and supplies stay constrained. The company's production averaged 2.814mn barrels of oil equivalent/day in the three months ending September 30, up 4% year on year, thanks to new field launches in Brazil, Libya and Russia and the easing of OPEC+ cuts. Output should reach 2.85-2.90mn boe/d in the final quarter of the year.
TotalEnergies projects that its average sales price for LNG will exceed $12/mn Btu in the fourth quarter, up from $9.10/mn Btu in the third quarter and $3.57/mn Btu a year before that. The company confirmed it would buy back $1.5bn of shares before the end of 2021.