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:
the launch of its multi-energy GGIP project in Iraq,
the launch of the RGLNG project in Texas, which will boost its LNG export capacity from the US to 15 Mt/y,
the completion of the acquisition of 100% of Total Eren in renewable electricity,
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
