TotalEnergies 3Q Profit Boosted by Higher Oil Prices, Refining Margins -- Update

By Giulia Petroni

TotalEnergies' profit rose in the third quarter of the year boosted by higher oil prices and refining margins, while shareholder distribution is in line with the company's recently upgraded strategy.

The French oil-and-gas major said quarterly net profit came in at $6.68 billion compared with $6.63 billion in the same period last year and $4.09 billion in the second quarter. On an adjusted basis, profit was $6.45 billion, down 35% but above FactSet-provided analyst estimates of $6.18 billion.

Hydrocarbon production was 2.48 million barrels of oil equivalent a day from 2.67 million boe/d in the previous year. Excluding Russia's Novatek, production was up 5% on year boosted by the start-up of several projects.

The company expects fourth-quarter production of between 2.4 million boe/d and 2.5 million boe/d, reflecting the impact of the sale of oil sands assets in Canada.

Refining throughput was down 7% on year in the quarter due to planned maintenance and unplanned shutdowns at the Port Arthur refinery in the U.S., which is expected to restart in mid-November, and Antwerp refinery in Belgium.

Despite high natural gas inventories in Europe ahead of winter, TotalEnergies said the gas market is "tense" and prices remain very reactive to production disruptions. The company sees its average liquefied natural selling price above $10 per million British thermal units in the fourth quarter, from $9.56 per million Btu in the third quarter.

TotalEnergies said it anticipates cash proceeds of around $4.1 billion in the fourth quarter from the Canadian assets divestments, which could bring gearing below 8%. It plans net investments of between $16 billion and $17 billion for the current year.

The company will distribute a third interim dividend of 74 European cents ($0.78) a share for 2023, up 7.25% on year and unchanged from the second quarter. Shareholder distribution is close to 43% of cash flow from operations at the end of September, in line with annual guidance of more than 40%.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

October 26, 2023 04:18 ET (08:18 GMT)

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