TotalEnergies Achieves Profits of $9.9B in Q3

TotalEnergies Achieves Profits of $9.9B in Q3

TotalEnergies reported a substantial increase in net profit for the third quarter compared to the same period last year, joining other energy titans in the sector in benefiting from higher oil and gas prices, albeit it also recorded a new impairment relating to Russia, Reuters reported.

The adjusted net income for the third quarter of TotalEnergies was $9.86 billion. In comparison, the same period in 2021 saw $4.77 billion and the second quarter of this year saw $9.8 billion.

Along with the $7.6 billion in provisions made in the first two quarters of the year, the business also disclosed a fresh impairment of $3.1 billion, which it claimed was tied to Russia. Although it is not as huge as BP’s more than $25 billion impairment for leaving the nation, the overall writedown for Russia is among the biggest recorded by Western businesses.

In response to Russia’s invasion of Ukraine, the price of oil and gas has increased this year. Shell also recorded a third-quarter profit of $9.45 billion on Thursday and announced plans to significantly increase its dividend by year’s end.

TotalEnergies has maintained ownership of a number of Russian investments, including modest holdings in Novatek, Yamal LNG, and Arctic LNG 2, unlike rivals BP and Shell with headquarters in London.

When sked about the reason for the provision, a TotalEnergies spokesman referred to comments made by the company’s chairman and chief executive, Patrick Pouyanne, at an investor presentation last month. Pouyanne said then that it was becoming “complex” for Western groups to receive dividends from Russian joint ventures and stake holdings.

“I’m not convinced we will continue to have any flows from Russia in the months to come,” Pouyanne said at the time.

In that presentation in late September, TotalEnergies outlined its strategy for a potential future without Russia while remaining cautious about cutting off its ties to that country. TotalEnergies stated it will expand investments and ramp up LNG output.

In addition, TotalEnergies announced on Thursday a one-time compensation bonus for staff in order to reflect its record-breaking profits. TotalEnergies has been the target of strikes by some French refinery workers.



Welcome! Login in to your account

Remember me Lost your password?

Don't have account. Register

Lost Password