Nigerian oil field, others boost TotalEnergies earnings to $9.9 billion
TotalEnergies has reported adjusted net income of $9.86 billion, compared with $4.77 billion for the same period in 2021 and $9.8 billion in the second quarter of this year.
Oil productions from it’s Ikike field in Nigeria also helped boost earnings, while the Liquefied Natural Gas (LNG) prices was a major drive behind the feat.
TotalEnergies also announced a new impairment of $3.1 billion related to Russia, adding to provisions of $7.6 billion in the first two quarters of the year for assets it owns there.
Chief Executive of TotalEnergies, Patrick Pouyanné, said in a statement: “In a context marked by an average Brent price of 100 $/b and an increase in gas prices exacerbated by Russia’s military aggression in Ukraine, TotalEnergies leveraged its integrated model, particularly LNG, to generate results in line with previous quarters. In the third quarter 2022, the company posted adjusted net income of $9.9bn and IFRS net income of $6.6bn after taking into account a new impairment of $3.1bn related to Russia,”
Pouyanné also noted that company cash flow was $11.7bn for the quarter. He said the balance sheet was strengthened with a gearing ratio of 4% and highlighted that return on equity was more than 30% over the past 12 months.
“The iGRP (integrated Gas, Renewables & Power) segment reported record adjusted net operating income of $3.6bn this quarter, up $1.1bn from the second quarter, and cash flow of $2.7bn, driven by an average LNG selling price up more than 50% compared to the previous quarter and by the strong performance of its trading activities,” TotalEnergies’ chief executive added.
The company also said it was continuing to implement its growth strategy by taking a stake in the North Field South LNG project in Qatar.
Meanwhile, in electricity and renewables, TotalEnergies noted that it has completed the acquisition of 50% of the Clearway Energy Group in the US – and announced a significant acquisition in Brazil.
In exploration and production, the energy firm posted an adjusted net operating income of $4.2bn and a cash flow of $6.4 bn. It said it had been impacted by unplanned shutdowns at Kashagan but noted it had started production at the Ikike field in Nigeria, launched the Begonia project in Angola and the Fenix project in Argentina – and announced a significant gas discovery in Cyprus.
