LNG

French major TotalEnergies reported an almost three-fold surge in second-quarter adjusted net income to $9.8 billion compared with $3.46Bln in the prior-year quarter even after a  $3.5Bln impairment charge related mainly to the potential impact of international sanctions on the value of its Novatek stake.

TotalEnergies posted annual net income of $16.03 billion versus losses of $7.42Bln the previous year and the earnings included a 10 percent increase in LNG sales totalling 42 million tonnes in 2021.

The company’s LNG sales for the fourth quarter jumped 16 percent to 11.2MT and the average LNG selling price was $13.12 per million British thermal units in the final three months of 2021, an increase of 44 percent compared with the third quarter.

Fourth-quarter net income came to $5.83Bln versus $847 million in the same three months of 2020.

Hydrocarbon production for LNG increased 6 percent year-on-year in the fourth quarter.

“LNG sales increased sharply on higher production from Cameron LNG in Louisiana and Freeport LNG in Texas, up 16 percent in the fourth quarter compared to a year ago and up 10 percent for full-year 2021 versus 2020,” stated the Paris-based company.

TotalEnergies also announces its decision not to sanction and to withdraw from the North Platte deepwater project in the US Gulf of Mexico.

“The decision not to continue with the project was taken as the company has better opportunities of allocation of its capital within its global portfolio,” said TotalEnergies.

TotalEnergies held a 60 percent operated interest in North Platte, alongside its joint-interest owner Equinor of Norway, which held 40 percent. .

“We have duly notified our partner and the relevant authorities of the immediate withdrawal from the project, and of its resignation as operator which will be effective following a short transition period to ensure an orderly hand-over of operatorship,” stated the company.

Brazil and Africa

TotalEnergies at the same time is increasing its presence in Brazil and Africa by entering the Brazilian Atapu and Sépia giant fields and launching the Lake Albert Resource Development Project for Uganda and Tanzania.

The French major’s annual results showed generated cash flow of $30.7Bln, which was $13Bln more than in 2020, and adjusted annual gross earnings came to $42.3bln.

“The integrated Gas, Renewables and Power segment reported adjusted net operating income of $2.8Bln and cash flow of $2.4Bln in the fourth quarter, bringing full-year results and cash flow to $6.2Bln and $6.1Bln, respectively,” said Chairman and Chief Executive Patrick Pouyanné.

“These historic results build on the globally integrated LNG portfolio, leveraging rising oil and gas prices and outperformance in the gas and LNG trading business,” he added.

“The profitable growth strategy in Renewables & Electricity continues with more than 10 gigawatts of installed gross capacity and more than 6 million electricity customers at year-end 2021,” stated the CEO.

TotalEnergies said it its 2022 outlook that it expected to continue the momentum that has been underway for several years.

“TotalEnergies is implementing its strategy of integrated growth in LNG, which will generate structural cash flow growth of $1Bln in 2022,” stated the company

“In addition, given the evolution of oil and gas prices in recent months and the lag effect on price formulas, TotalEnergies anticipates that its average LNG selling price should remain at a high level of at least $12 per MMBtu in the first half of 2022,” it added.

July 29 (LNGJ) – Second-quarter LNG sales by TotalEnergies of France were steady at 10.5 million tonnes compared with 10.4MT in the same three months of 2020 and 9.9MT in the first three months of 2021.

   “Hydrocarbon production for LNG decreased year-on-year by 3 percent and 5 percent respectively in the second quarter of 2021 and the first half of 2021, notably due to the shutdown of the Snøhvit LNG plant following a fire at the end of September 2020 and the planned maintenance shutdown in the second quarter 2021 on Ichthys LNG's liquefaction Trains in Australia,” explained the company in its earnings report.

   “TotalEnergies generated cash flow of $6.8 billion, an increase of more than $1Bln compared to the previous quarter and by maintaining investment discipline, generated net cash flow of $3.2Bln this quarter, which covered the interim dividend of $2.1Bln and allowed continued debt reduction,” said Chief Executive Patrick Pouyanné.