French energy major Total said second-quarter adjusted net income dropped 19 percent to $2.88 billion from $3.55Bln in the same three months of 2018 in results offset by a more than doubling of liquefied natural gas sales and the acquisition of Mozambique LNG assets from Occidental Petroleum.
Total said second-quarter LNG sales more than doubled to 8.5 million tonnes from 3.9MT in the same three months a year ago.
First-half LNG sales came to 16.2MT versus 7.7MT in the first half of 2018.
The company said that while gas prices fell sharply there was an increase in LNG sales.
“Compared to the second quarter of 2018, operating cash flow before working capital changes increased by 77 percent, driven by a doubling of LNG sales,” said Total.
“Total LNG sales more than doubled compared to last year for the second quarter and first half 2019 thanks to the start-up of Yamal LNG Trains 2 and 3 in Russia, Ichthys LNG in Australia, the first Cameron LNG Train in the US and the acquisition of the portfolio of LNG contracts from Engie in 2018,” explained Total.
Total also stated that its signing of an agreement with Occidental Petroleum of the US to acquire Anadarko Petroleum’s assets in Africa, including its LNG stake in Mozambique, would capitalize on the French company’s strengths.
“In Mozambique, it leverages its expertise in LNG, in Ghana, the deep offshore and, in Algeria, its historic presence,” said Chairman and Chief Executive Patrick Pouyanné.
“The Group continues to grow in LNG with the signing of a sales contract with the Chinese company Guanghui, the takeover of Toshiba’s LNG portfolio (Freeport LNG) and the start-up of Cameron LNG,” added Pouyanné.
“This strategy is complemented by the divestments such as the recent sale of mature assets in the UK North Sea,” stated the CEO.