TotalEnergies claimed “robust” second quarter results, even as adjusted EBITDA slipped 41% year on year to $11.1 billion.
For the first half of the year, adjusted EBITDA was $25.3bn, down 30%.
Chairman and CEO Patrick Pouyanné said the quarter had been “favourable” but with softening oil and gas prices. “The company generated adjusted net income of $5bn and return on average capital employed [ROACE] of 22%.”
Brent prices were down 31% in the quarter, at $78.1 per barrel, while gas markers were down even more. Henry Hub was down 69%, NBP 53% and JKM 60%.
Production in the quarter was up 2% year on year, at 2.5 million barrels of oil equivalent per day. The company attributed this to new project start ups such as Ikike in Nigeria, Mero 1 in Brazil and Block 10 in Oman, in addition to acquisitions in the United Arab Emirates.
Oil production was up 12% at 1.42mn bpd, while gas was down 28% at 1.06mn boepd.
Total expects to hold production steady at 2.5mn boepd in the third quarter.
ROACE for integrated power reached 10.1%, with Total reporting adjusted net operating income and cash flow up at $450 million and $491mn respectively. In the first half, cash flow neared $1bn, more than the cash flow for all of 2022.
Total launched four major projects this quarter. The Gas Growth Integrated Project (GGIP) in Iraq, Rio Grande LNG in Texas, acquiring Total Eren and the award of contracts for the Amiral petrochemical project in Saudi Arabia.
In addition to these big ticket plans, the Total board approved the payment of 40% of cash flow to shareholders. The dividend increased 7.25% year on year, while another 2 billion euros was approved for buybacks.
Power plans
The company announced the acquisition of the outstanding stake in Total Eren yesterday.
During the quarter, it also won two maritime leases for offshore wind farms, with 3 GW of capacity, in Germany and made progress with 3 GW of solar projects in Spain. In Kazakhstan it signed a 25-year power purchase agreement (PPA) for battery storage in Kazakhstan and launched a 75 MWh storage project in Belgium.
Gross installed renewable power generation reached 19 GW at the end of the second quarter, an increase of more than 1 GW from the first quarter. The connection of the UK’s Seagreen project added 0.3 GW and another 0.5 GW was installed in the US.
