TotalEnergies  has released the second quarter 2023 financial statements. On the occasion, Patrick Pouyanné said:

“In a favorable but softening oil & gas environment TotalEnergies once again delivered this quarter robust results, strong cash flow, and attractive shareholder distribution. The Company generated adjusted net income of $5.0 billion and return on average capital employed of 22%. TotalEnergies generated $8.5 billion in cash flow in the second quarter and $18 billion in the first half of 2023.

Exploration & Production reported adjusted net operating income of $2.3 billion and cash flow of $4.4 billion. Production of 2.5 Mboe/d was up 2% year-on-year, thanks to new project start-ups (Ikike in Nigeria, Mero 1 in Brazil, Block 10 in Oman) and benefited from the integration of the SARB and Umm Lulu oil fields in the United Arab Emirates.

The Integrated LNG segment posted cash flow of $1.8 billion, benefiting from the high margins captured in 2022. Adjusted net operating income was $1.3 billion reflecting lower LNG prices (averaging 10 $/Mbtu in the second quarter) and softer trading results in less volatile markets.

Integrated Power’s adjusted net operating income and cash flow increased to $450 million and $491 million respectively in the second quarter, building its track record as an integrated and profitable player in the electricity markets with a ROACE of 10.1%.

Downstream reported resilient adjusted net operating income of $1.5 billion and cash flow of $2.1 billion in a context of lower refining margins.

As part of the implementation of its multi-energy strategy, the Company also announced four major projects this quarter:

1. the launch of its multi-energy GGIP project in Iraq, 
2. the launch of the RGLNG project in Texas, which will boost its LNG export capacity from the US to 15 Mt/y, 
3. the completion of the acquisition of 100% of Total Eren in renewable electricity, 
4. the award of the EPC contracts for the Amiral petrochemical project in Saudi Arabia.

These projects demonstrate TotalEnergies’ ability to seize opportunities allowing the Company to deploy its multi-energy model based on two pillars: production of low-cost low-emissions hydrocarbons (oil and LNG) and the development of a profitable integrated power business.

In this favorable environment, the Board of Directors confirmed for 2023 a shareholder distribution of more than 40% of cash flow. The Board decided the distribution of a second interim dividend for the 2023 financial year in the amount of €0.74/share, up 7.25% year-on-year, and authorized the Company to buy back shares for $2 billion in the third quarter of 2023.”

Highlights

Multi-energy strategy

• Launch of GGIP in Iraq: major multi-energy project (access to low-cost, low-emission oil from the Ratawi field, gas gathering and treatment for electricity generation, 1 GW solar farm and sea water treatment) in favor of the sustainable development of natural resources in Basrah area
• Partnership with SONATRACH to increase the production of the Tin Fouyé Tabankort fields, extend to 2024 2 Mt/y of LNG deliveries in France, and develop renewable energy projects in Algeria

Upstream

• Production start-up of Absheron gas and condensate field, in Azerbaijan
• Oil and gas discovery on the Ntokon well, located on OML 102 in Nigeria
• Renewal for 20 years of the OML130 license, in Nigeria
• Exercise by ConocoPhillips of its preemption right on Surmont, following the announcement of the sale to Suncor of the entirety of the shares of TotalEnergies EP Canada Ltd
• Signature of Production Sharing Contracts on Blocks 6 and 8, in Suriname
• Signature of the Production Sharing Contract for the Agua Marinha block, in Brazil

Downstream

• Award of $11 billion EPC contracts for the Amiral project, in Saudi Arabia
• Realignment with INEOS of stakes in petrochemical assets in Eastern France
• Integrated LNG
• Launch of the RGLNG project, in Texas: acquisition of a 16.67% stake in the JV in charge of developing the 17.5 Mt/y project, acquisition of a 17.5% stake in NextDecade, and signature of a 5.4 Mt/y offtake agreement for 20 years
• Delivery of the first LNG cargo to the Dhamra LNG terminal in India
• Signing of LNG sale contracts to IOCL in India for 10 years and to ADNOC Gas for 3 years

Integrated Power

• Acquisition at 100% of Total Eren, a leading renewable electricity producer
• Award of two maritime leases to develop two offshore wind farms for a total capacity of 3 GW in Germany
• Favorable environmental impact assessment for 3 GW of solar projects in Spain
• 25-year Power Purchase Agreement for 1 GW onshore wind farm with battery storage in Kazakhstan
• Launch at Antwerp, in Belgium, of a 75 MWh battery energy storage project
• Strategic Collaboration Agreement with Petronas, to develop renewable energy projects in the Asia Pacific region. Agreement to develop the 100 MW Pleasant Hills solar project in Australia.

Decarbonization & new molecules

• Partnership with TES to develop a large-scale production unit for e-natural gas in the United States
• Agreement with VNG to initiate the future supply of green hydrogen to the Leuna refinery, in Germany
• SAF: doubling SAF production capacity to 285 kt per year at Grandpuits, in France

Biomethane:

• Acquisition of 20% stake in the Finnish start-up Ductor
• Signature with Saint-Gobain France of a 100 GWh sale agreement over 3 years

Construction in Grandpuits, in France, of a production unit with annual capacity of 80 GWh