Totalenergies Benefits From Favorable Environment Leveraging Leading Position In LNG To Generate $4.8 Billion Adjusted Net Income And $8.4 Billion Cash Flow
The Board of Directors of TotalEnergies SE, meeting on October 27, 2021, under the Chairmanship of Chief Executive Officer Patrick Pouyanné, approved the Company’s third quarter 2021 accounts. On the occasion, Patrick Pouyanné said:
“The global economic recovery, notably in Asia, drove all energy prices sharply higher in the third quarter due to the interconnection of energy systems. Gas prices in Asia and Europe, up more than 85% from the previous quarter, reached unprecedented levels, and oil prices gained 7%, continuing their steady year-long rise.
TotalEnergies reported adjusted net income of $4.8 billion, up 38% compared to the second quarter 2021, fully benefiting from its multi-energy model, and, particularly this quarter, from its position as a world leader in LNG. The Company generated cash flow (DACF) of $8.4 billion, up nearly 25% compared to the previous quarter, and adjusted EBITDA of $11.2 billion.
The integrated Gas Renewables & Power (iGRP) segment generated adjusted net income of $1.6 billion and cash flow of $1.7 billion, both new record highs, thanks to an outperformance of its trading activities, which leveraged its integrated worldwide LNG portfolio. The renewables and electricity activities continued to grow, with gross renewable electricity generation capacity reaching nearly 10 GW, thanks mainly to the addition of 1 GW during the quarter from India. The number of electricity customers grew to six million.
Exploration & Production, benefiting from a 2% production increase during the quarter, thanks to the evolution of OPEC+ quotas, and from higher Brent and natural gas prices, reported $2.7 billion of adjusted net operating income, up more than 20% from the previous quarter, and cash flow of $4.9 billion.
Downstream took advantage of petrochemical margins that remained high and of the improvement in refining margins in Europe, although impacted by the rise in energy costs. Marketing & Services confirmed its return to pre-crisis level results. The Downstream generated adjusted net operating income and cash flow that were up by approximately 10% over the quarter to $1 billion and $1.6 billion, respectively.
Maintaining discipline on investments, TotalEnergies reported net cash flow of $6.2 billion in the third quarter, covering the interim dividend of $2.1 billion and allowing it to continue to reduce its net debt, with gearing of 17.7% as of September 30, 2021. The return on equity was 12% over the past twelve months. Strong cash generation from oil and gas makes it possible to invest in profitable growth projects in renewables & electricity, and thus to build a sustainable multi-energy company, combining energy transition and shareholder returns.
The Board of Directors decided to distribute a third interim dividend for the 2021 financial year of €0.66/share and confirms the completion of $1.5 billion share repurchases in the fourth quarter 2021.”
• Signed major agreements in Iraq covering investments in four projects (gas treatment for electricity generation, solar power, optimization of an existing field, seawater treatment) for the sustainable development of natural resources in the Basra area
• TotalEnergies contributed to energy transition dialog in view of COP26 with the publication of “Energy Panorama” and “TotalEnergies Energy Outlook 2021”
• Methane emissions: deployed innovative technology developed by Qnergy to significantly reduce methane emissions and partnered with GHGSat to monitor methane emissions at sea by satellite
• CCS: Aramis partnership with Shell, EBN and Gasunie, for the development of CO2 transport infrastructure for storage in depleted gas fields in the Netherlands
• Renewables and Electricity
• Adani Green Energy Limited (TotalEnergies 20%) acquired SB Energy India’s portfolio of 5 GW of renewable power generation capacity in operation and under construction in India
• Submitted bid with Green Investment Group (GIG) and RIDG for a 2 GW project in Scotland and study of associated industrial-scale green hydrogen project
• Associations with Simply Blue Group for floating wind development in the U.S., and with GIG and Qair for floating wind development in France
• Renewable electricity sales contract of 50 GWh/year over 15 years with Air Liquide in Belgium
• Partnership with Amazon to supply its data centers with renewable electricity (474 MW), in Europe and the U.S.
• Mercedes-Benz entered as an equal partner with TotalEnergies and Stellantis in Automotive Cell Company (ACC), targeting at least 120 GWh EV battery manufacturing capacity by 2030
• Acquired a network of 1500 EV charging stations in Singapore
• Obtained concession for Antwerp’s EV public charging network
• Partnered with China Three Gorges Corporation to develop more than 11,000 EV fast- charging stations in Hubei Province, China
• Launched with other industrial players the world’s largest fund dedicated to the development of carbon-free hydrogen infrastructure, with an investment target of €1.5 billion
• Agreement with Air Liquide for the development of low-carbon hydrogen production in the Normandy industrial basin, backed by technologies such as CCS and electrolysis
• Launched the fourth development phase of the giant Mero field in Brazil Downstream
• Expanded Synova in Normandy to double TotalEnergies’ recycled plastics production capacity
• Partnered with Safran in the field of decarbonization of the aviation sector
Source: Total Energies