TotalEnergies 3Q Profit Boosted by Higher Oil Prices, Refining Margins -- Update
26 October 2023 - 7:33PM
Dow Jones News
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 giulia.petroni@wsj.com
(END) Dow Jones Newswires
October 26, 2023 04:18 ET (08:18 GMT)
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