TotalEnergies has strengthened its balance sheet and doubled its profit in the third quarter of 2022 on a year-on-year basis, driven by its LNG business and higher gas prices due to the Ukraine crisis.
TotalEnergies revealed on Thursday that it recorded a net income of $9.9 billion in the third quarter of 2022 compared to $9.8 billion in the second quarter of 2022 and $4.8 billion in the third quarter of 2021. The firm also disclosed a new impairment of $3.1 billion related to Russia.
Patrick Pouyanné, CEO of TotalEnergies, commented: “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.”
The French giant’s business segments benefited from higher oil and gas prices in 3Q 2022 with an adjusted net operating income of $10.3 billion compared to $10.5 billion in 2Q 2022 and $5.4 billion in 3Q 2021.
In line with this, the iGRP – integrated Gas, Renewables & Power – segment reported record adjusted net operating income of $3.6 billion this quarter, up $1.1 billion from the second quarter, and cash flow of $2.7 billion, “driven by an average LNG selling price up more than 50 per cent compared to the previous quarter and by the strong performance of its trading activities.”
On the other hand, TotalEnergies’ CEO explained that the firm’s Exploration & Production segment posted an adjusted net operating income of $4.2 billion and cash flow of $6.4 billion, “despite a decrease in production this quarter, mainly due to unplanned shutdowns at Kashagan.”
Furthermore, the company’s cash flow from operations was $17.8 billion in 3Q 2022, compared with $16.3 billion in 2Q 2022 and $5.6 billion in 3Q 2021. Pouyanné explained that TotalEnergies “continued to implement its growth strategy by taking a stake in the North Field South LNG project in Qatar.”
In pursuit of implementing its strategy to invest in low-cost and low-emission oil projects, TotalEnergies started production at the Ikike field in Nigeria and launched the Begonia oil project in Angola and the Fenix project in Argentina. In addition, the company confirmed a significant gas discovery within a block operated by Eni in Cyprus where the French giant holds a 50 per cent stake.
