© Lutt Julien - Capa - TotalEnergies
“ TotalEnergies once again demonstrates the relevance of its strategy, fully leveraging supportive energy prices with increasing adjusted net income of $6.5 billion and cash-flow of $9.3 billion.”
While implementing its balanced transition strategy that combines Oil & Gas and Integrated Power, TotalEnergies demonstrates once again this quarter its ability to leverage a supportive price environment, generating adjusted net income of $6.5 billion and return on average capital employed of over 20%. Cash-flow from operations (CFFO) increased to $9.3 billion in the third quarter and totaled $27.4 billion in the first nine months of 2023.
In the Oil & Gas business, production at nearly 2.5 million barrels of oil equivalent per day is up 5% year-on-year, thanks to the start-up of several oil projects in Brazil (Mero 1), Nigeria (Ikike) and Iraq (Ratawi) and gas projects in Oman (Block 10) and Azerbaijan (Absheron). During the quarter, confirmation of exploration successes in Suriname and Namibia opened the way to new oil developments contributing to future cash-flow growth.
Exploration & Production generated adjusted net operating income and cash-flow both increasing by $0.8 billion quarter-to-quarter to $3.1 billion and $5.2 billion, respectively. Integrated LNG confirms the robustness of its global integrated portfolio, with adjusted net operating income of $1.3 billion and cash-flow of $1.6 billion. Downstream adjusted net operating income and cash-flow increased sequentially to $1.8 billion and $2.2 billion, respectively, due to good availability of European refining assets.
This quarter again demonstrates the relevance of TotalEnergies’ profitable transition strategy. For the first time, Integrated Power adjusted net operating income and cash-flow both exceed $500 million. Year-to-date cash-flow at the end of the third quarter is close to $1.5 billion, in line with the objective to generate around $2 billion of cash-flow in 2023. Highlights of this quarter included the commissioning of the 1 GW Seagreen offshore wind farm in Scotland, which was delivered within budget, and its 380 MW Myrtle Solar project in the US, which includes battery storage, and the 100% acquisition of Total Eren.
Based on the quality of both these results, the Board of Directors decided on the distribution of the third interim dividend for the 2023 financial year in the amount of €0.74 per share, up 7.25% year-on-year. Additionally, the Company is executing a $9 billion share buyback program in 2023, as announced on September 27. Year-to-date shareholder distribution is close to 43% at the end of September, in line with the recently increased annual guidance of more than 40%.