TotalEnergies reports IFRS net income of $6.6 billion, driven by its LNG business, strengthens its balance sheet and shares benefit with employees and shareholders
PARIS–(BUSINESS WIRE)–
TotalEnergies SE (Paris:TTE) (LSE:TTE) (NYSE:TTE):
|
3Q22 |
Change |
9M22 |
Change |
|
| Net income (TotalEnergies share) (B$) |
6.6 |
+43% |
17.3 |
+69% |
| Adjusted net income (TotalEnergies share)(1) |
|
|
|
|
| – in billions of dollars (B$) |
9.9 |
x2,1 |
28.6 |
x2,5 |
| – in dollars per share |
3.83 |
x2,2 |
10.96 |
x2,6 |
| Adjusted EBITDA(1) (B$) |
19.4 |
+74% |
55.6 |
+98% |
| DACF(1) (B$) |
12.0 |
+44% |
37.7 |
+80% |
| Cash Flow from operations (B$) |
17.8 |
x3,2 |
41.7 |
x2,2 |
| Net-debt-to-capital ratio(2) of 4.0% at September 30, 2022 vs. 9.8% at June 30, 2022 Special interim dividend set at 1 €/share Third 2022 interim dividend set at 0.69 €/share |
||||
The Board of Directors of TotalEnergies SE, meeting on October 26, 2022 under the chairmanship of CEO Patrick Pouyanné approved the Company’s financial statements for the third quarter of 2022. On this occasion, Patrick Pouyanné said:
“In a context marked by an average Brent price of 100 $/b and an increase in gas prices exacerbated by Russia’s military aggression in Ukraine, TotalEnergies leveraged its integrated model, particularly LNG, to generate results in line with previous quarters. In the third quarter 2022, the Company posted adjusted net income of $9.9 billion and IFRS net income of $6.6 billion after taking into account a new impairment of $3.1 billion related to Russia. Cash flow was $11.7 billion, and the Company strengthened its balance sheet with a gearing ratio of 4%. Return on equity was more than 30% over the past 12 months.
The iGRP (integrated Gas, Renewables & Power) segment reported record adjusted net operating income of $3.6 billion this quarter, up $1.1 billion from the second quarter, and cash flow of $2.7 billion, driven by an average LNG selling price up more than 50% compared to the previous quarter and by the strong performance of its trading activities. The Company continued to implement its growth strategy by taking a stake in the North Field South LNG project in Qatar. In Electricity & Renewables, TotalEnergies completed the acquisition of 50% of the Clearway Energy Group in the United States and announced a significant acquisition in Brazil.
Exploration & Production posted adjusted net operating income of $4.2 billion and cash flow of $6.4 billion, despite a decrease in production this quarter, mainly due to unplanned shutdowns at Kashagan. TotalEnergies started production at the Ikike field in Nigeria, launched the Begonia project in Angola and the Fenix project in Argentina, and announced a significant gas discovery in Cyprus.
Downstream benefited from strong distillate margins, generating an outstanding adjusted net operating income of $2.4 billion and a cash flow of $2.9 billion.
In this favorable environment, taking into account income and production taxes of $26 billion worldwide, the Company is implementing a balanced value-sharing policy with an exceptional one-month-salary bonus in 2022 to all its employees(3) worldwide and, as announced on September 28, its shareholder return policy targeting 35-40% cash flow payout beginning in 2022.
The Board of Directors therefore decided to distribute a third interim dividend for the 2022 financial year in the amount of €0.69/share, equal to the first and second 2022 interim dividends and an increase of 5% from the interim and the final dividends paid for the 2021 financial year, and set the ex-dividend and payment dates for the interim special dividend of €1/share in December 2022. »
1. Highlights(4)
Social and environmental responsibility
- TotalEnergies’ contributed to the energy transition dialogue in view of COP27 with the publication of the “TotalEnergies Energy Outlook 2022”
- Fuel price reduction program until year-end for TotalEnergies’ service stations in France: 20 c/l discount extended until November 15 and then 10 c/l discount until December 31, 2022
Electricity & Renewables
- Acquired an interest in the development of more than 12 GW of onshore solar and wind projects in Brazil
-
Offshore wind:
- Start-up of Seagreen, Scotland’s largest offshore wind farm
-
Solar:
- Start-up of the 800 MW Al Kharsaah solar power plant in Qatar
- Reached the objective of 500 MW of distributed solar generation capacity worldwide
LNG
- Acquired a 9.375% stake in the 16 Mt/y North Field South LNG project in Qatar
- Launched the FEED for the Papua LNG project’s upstream production facilities, in Papua New Guinea
Upstream
- Started production at the Ikike field in Nigeria
- Launched developments in Angola of the Begonia oil field, the Quiluma and Maboqueiro gas fields, as well as a first solar project with a capacity of 35 MW
- Launched the Fenix offshore gas project in Argentina
- Significant offshore gas discovery at Cronos-1 well, located on Block 6 in Cyprus
- Exploration & production sharing agreement signed for Block 11 in Oman
- Sold 18% stake in the onshore Sarsang oil field in Iraq
- Sold 49% interest in the Termokarstovoye gas field in Russia to Novatek
Downstream and new molecules
- Agreement with SARIA to develop SAF production on the Grandpuits platform in France
- Sold 50% of fuel distribution business in Egypt to ADNOC
Decarbonization
- Awarded a CO2 sequestration license in Australia, in partnership with INPEX and Woodside
- First cross-border commercial agreement for CO2 transport and storage on the Northern Lights project in Norway
- Memorandum of understanding with Holcim for a pilot project to decarbonize a cement plant in Belgium
- Created with the Technical University of Denmark a research center of excellence in decarbonized energies
2. Key figures from TotalEnergies’ consolidated financial statements(5)
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
In millions of dollars, except effective tax rate, earnings per share and number of shares |
9M22 |
9M21 |
9M22 |
|
19,420 |
18,737 |
11,180 |
+74% |
Adjusted EBITDA (6) |
55,581 |
28,017 |
+98% |
|
10,279 |
10,500 |
5,374 |
+91% |
Adjusted net operating income from business segments |
30,237 |
12,893 |
x2,3 |
|
4,217 |
4,719 |
2,726 |
+55% |
Exploration & Production |
13,951 |
6,914 |
x2 |
|
3,649 |
2,555 |
1,608 |
x2,3 |
Integrated Gas, Renewables & Power |
9,255 |
3,484 |
x2,7 |
|
1,935 |
2,760 |
602 |
x3,2 |
Refining & Chemicals |
5,815 |
1,356 |
x4,3 |
|
478 |
466 |
438 |
+9% |
Marketing & Services |
1,216 |
1,139 |
+7% |
|
2,576 |
1,944 |
1,143 |
x2,3 |
Contribution of equity affiliates to adjusted net income |
6,381 |
2,403 |
x2,7 |
|
44.1% |
39.4% |
39.6% |
– |
Effective tax rate (7) |
40.8% |
36.6% |
– |
|
9,863 |
9,796 |
4,769 |
x2,1 |
Adjusted net income (TotalEnergies share) |
28,636 |
11,235 |
x2,5 |
|
3.83 |
3.75 |
1.76 |
x2,2 |
Adjusted fully-diluted earnings per share (dollars) (8) |
10.96 |
4.14 |
x2,6 |
|
3.78 |
3.50 |
1.49 |
x2,5 |
Adjusted fully-diluted earnings per share (euros)* |
10.31 |
3.46 |
x3 |
|
2,560 |
2,592 |
2,655 |
-4% |
Fully-diluted weighted-average shares (millions) |
2,589 |
2,648 |
-2% |
|
|
|
|
|
|
|
|
|
|
6,626 |
5,692 |
4,645 |
+43% |
Net income (TotalEnergies share) |
17,262 |
10,195 |
+69% |
|
|
|
|
|
|
|
|
|
|
3,116 |
2,819 |
2,813 |
+11% |
Organic investments (9) |
7,916 |
7,993 |
-1% |
|
1,587 |
2,076 |
(958) |
ns |
Net acquisitions (10) |
4,585 |
1,029 |
x4,5 |
|
4,703 |
4,895 |
1,855 |
x2,5 |
Net investments (11) |
12,501 |
9,022 |
+39% |
|
|
|
|
|
|
|
|
|
|
11,736 |
13,233 |
8,060 |
+46% |
Operating cash flow before working capital changes (12) |
36,595 |
19,778 |
+85% |
|
12,040 |
13,631 |
8,390 |
+44% |
Operating cash flow before working capital changes w/o financial charges (DACF) (13) |
37,665 |
20,901 |
+80% |
|
17,848 |
16,284 |
5,640 |
x3,2 |
Cash flow from operations |
41,749 |
18,789 |
x2,2 |
* Average €-$ exchange rate: 1.0070 in the third quarter 2022 and 1.0638 in the first nine months of 2022.
3. Key figures of environment, greenhouse gas emissions and production
3.1 Environment* – liquids and gas price realizations, refining margins
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
9M22 |
9M21 |
9M22 |
|
|
100.8 |
113.9 |
73.5 |
+37% |
Brent ($/b) |
105.5 |
67.9 |
+55% |
|
7.9 |
7.5 |
4.3 |
+84% |
Henry Hub ($/Mbtu) |
6.7 |
3.3 |
x2 |
|
42.5 |
22.2 |
16.9 |
x2,5 |
NBP ($/Mbtu) |
32.4 |
10.8 |
x3 |
|
46.5 |
27.0 |
18.6 |
x2,5 |
JKM ($/Mbtu) |
34.9 |
12.9 |
x2,7 |
|
93.6 |
102.9 |
67.1 |
+40% |
Average price of liquids ($/b) Consolidated subsidiaries |
95.4 |
62.2 |
+53% |
|
16.83 |
11.01 |
6.33 |
x2,7 |
Average price of gas ($/Mbtu) Consolidated subsidiaries |
13.28 |
4.95 |
x2,7 |
|
21.51 |
13.96 |
9.10 |
x2,4 |
Average price of LNG ($/Mbtu) Consolidated subsidiaries and equity affiliates |
16.26 |
7.25 |
x2,2 |
|
99.2 |
145.7 |
8.8 |
x11,3 |
Variable cost margin – Refining Europe, VCM ($/t)** |
100.3 |
8.0 |
x12,5 |
* The indicators are shown on page 21.
** This indicator represents TotalEnergies’ average margin on variable cost for refining in Europe (equal to the difference between TotalEnergies European refined product sales and crude oil purchases with associated variable costs divided by volumes refined in tons). 3Q21 and 9M21 data as disclosed in 2021 included the restatement of 3Q21 figures to reflect 2Q21 environment for energy costs.
The average LNG selling price was up 54% in the third quarter compared to the previous quarter, benefiting on a lagged basis from the increase in oil and gas price indexes on long-term contracts as well as high spot gas prices.
3.2 Greenhouse gas emissions(14)
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
GHG emissions (MtCO2e) |
9M22 |
9M21 |
9M22 |
|
10.3 |
9.6 |
9.3 |
+10% |
Scope 1+2 from operated facilities (15) |
29.6 |
27.1 |
+9% |
|
14.0 |
13.4 |
– |
ns |
Scope 1+2 – equity share |
41.4 |
– |
ns |
|
|
|
|
|
|
|
|
|
|
90 |
94 |
100 |
-10% |
Scope 3 from Oil & Gas Worldwide (16) |
282 |
293 |
-4% |
|
65 |
65 |
74 |
-12% |
of which Scope 3 Oil Worldwide (17) |
196 |
210 |
-7% |
Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available.
Excluding Covid-19 effect for emissions data from 2Q20 through 2Q22.
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
Methane emissions (ktCH4) |
9M22 |
9M21 |
9M22 |
|
10 |
10 |
12 |
-16% |
Methane emissions from operated facilities |
31 |
37 |
-16% |
|
14 |
13 |
– |
ns |
Methane emissions – equity share |
38 |
– |
ns |
Estimated 2022 quarterly emissions. 2021 quarterly equity share data are not available.
The evolution of Scope 1+2 emissions from the operated facilities resulted from the high-capacity utilization of CCGTs and refineries in Europe, including the restart of the Donges refinery in France.
3.3 Production*
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
Hydrocarbon production |
9M22 |
9M21 |
9M22 |
|
2,669 |
2,738 |
2,814 |
-5% |
Hydrocarbon production (kboe/d) |
2,750 |
2,808 |
-2% |
|
1,298 |
1,268 |
1,288 |
+1% |
Oil (including bitumen) (kb/d) |
1,291 |
1,272 |
+1% |
|
1,371 |
1,470 |
1,526 |
-10% |
Gas (including condensates and associated NGL) (kboe/d) |
1,459 |
1,535 |
-5% |
|
|
|
|
|
|
|
|
|
|
2,669 |
2,738 |
2,814 |
-5% |
Hydrocarbon production (kboe/d) |
2,750 |
2,808 |
-2% |
|
1,494 |
1,483 |
1,517 |
-2% |
Liquids (kb/d) |
1,501 |
1,496 |
– |
|
6,367 |
6,835 |
7,070 |
-10% |
Gas (Mcf/d) |
6,785 |
7,161 |
-5% |
* Company production = E&P production + iGRP production.
Hydrocarbon production was 2,669 thousand barrels of oil equivalent per day (kboe/d) in the third quarter of 2022, down 5% year-on-year, comprised of:
- +3% due to the start-up and ramp-up of projects including Clov Phase 2 and Zinia Phase 2 in Angola, Mero 1 in Brazil and Ikike in Nigeria,
- +2% due to the increase in OPEC+ production quotas,
- -3% due to higher planned maintenance, particularly on Ichthys, and unplanned shutdowns on Kashagan,
- -3% portfolio effect, notably related to the end of the operating licenses for Qatargas 1 and Bongkot North in Thailand, as well as the effective withdrawal from Myanmar, partially offset by the entry into the Sepia and Atapu producing fields in Brazil,
- -1% due to security-related production cuts in Libya and Nigeria,
- -1% due to the price effect,
- -2% due to the natural decline of the fields.
Compared to the previous quarter, production was down 2.5%, mainly due to planned maintenance, notably at Ichthys, and unplanned shutdowns at Kashagan, partially offset by the entry into production fields of Sepia and Atapu and the ramp-up of Mero 1 in Brazil.
4. Analysis of business segments
4.1 Integrated Gas, Renewables & Power (iGRP)
4.1.1 Production and sales of Liquefied Natural Gas (LNG) and electricity
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
Hydrocarbon production for LNG |
9M22 |
9M21 |
9M22 |
|
418 |
462 |
533 |
-21% |
iGRP (kboe/d) |
458 |
518 |
-12% |
|
40 |
53 |
67 |
-41% |
Liquids (kb/d) |
51 |
61 |
-17% |
|
2,067 |
2,233 |
2,527 |
-18% |
Gas (Mcf/d) |
2,216 |
2,489 |
-11% |
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
Liquefied Natural Gas in Mt |
9M22 |
9M21 |
9M22 |
|
10.4 |
11.7 |
10.0 |
+5% |
Overall LNG sales |
35.4 |
30.4 |
+16% |
|
4.0 |
4.1 |
4.3 |
-6% |
incl. Sales from equity production* |
12.6 |
12.8 |
-2% |
|
9.2 |
10.2 |
8.3 |
+12% |
incl. Sales by TotalEnergies from equity production and third party purchases |
31.4 |
25.0 |
+26% |
* The Company’s equity production may be sold by TotalEnergies or by the joint ventures.
Third quarter 2022 LNG production was down 6% year-on-year, mainly due to the end of the Qatargas 1 operating license, planned maintenance on Ichthys LNG in Australia as well as the decrease in gas supply to NLNG in Nigeria for security reasons.
Overall LNG sales were down 10% in the third quarter compared to the previous quarter, mainly due to the outage at Freeport LNG, planned maintenance at Ichthys LNG and a shutdown of production at Idku LNG in Egypt due to insufficient gas supply.
Nevertheless, third quarter 2022 overall LNG sales were up 5% year-on-year, mainly due to the increase in spot purchases to maximize the use of the Company’s regasification capacity in Europe and seize opportunities in a volatile market.
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
Electricity & Renewables |
9M22 |
9M21 |
9M22 |
|
67.8 |
50.7 |
42.7 |
+59% |
Portfolio of renewable power generation gross capacity (GW) (1),(2),(3) |
67.8 |
42.7 |
+59% |
|
16.0 |
11.6 |
9.5 |
+68% |
o/w installed capacity |
16.0 |
9.5 |
+68% |
|
5.4 |
5.2 |
6.1 |
-11% |
o/w capacity in construction |
5.4 |
6.1 |
-11% |
|
46.4 |
33.9 |
27.1 |
+71% |
o/w capacity in development |
46.4 |
27.1 |
+71% |
|
33.9 |
26.8 |
26.6 |
+28% |
Gross renewables capacity with PPA (GW) (1),(2),(3) |
33.9 |
26.6 |
+28% |
|
45.2 |
38.4 |
31.7 |
+43% |
Portfolio of renewable power generation net capacity (GW) (1),(3) |
45.2 |
31.7 |
+43% |
|
7.4 |
5.8 |
4.7 |
+59% |
o/w installed capacity |
7.4 |
4.7 |
+59% |
|
3.5 |
3.7 |
4.0 |
-12% |
o/w capacity in construction |
3.5 |
4.0 |
-12% |
|
34.2 |
28.9 |
23.0 |
+49% |
o/w capacity in development |
34.2 |
23.0 |
+49% |
|
8.5 |
7.7 |
4.7 |
+79% |
Net power production (TWh) (4) |
23.7 |
14.5 |
+64% |
|
2.4 |
2.5 |
1.7 |
+42% |
incl. power production from renewables |
7.1 |
4.9 |
+45% |
|
6.3 |
6.2 |
6.0 |
+5% |
Clients power – BtB and BtC (Million) (3) |
6.3 |
6.0 |
+5% |
|
2.8 |
2.7 |
2.7 |
+1% |
Clients gas – BtB and BtC (Million) (3) |
2.8 |
2.7 |
+1% |
|
12.1 |
12.3 |
11.7 |
+3% |
Sales power – BtB and BtC (TWh) |
40.7 |
40.5 |
+1% |
|
14.2 |
19.1 |
13.2 |
+7% |
Sales gas – BtB and BtC (TWh) |
68.3 |
70.0 |
-3% |
|
|
|
|
|
|
|
|
|
|
460 |
462 |
291 |
+58% |
Proportional adjusted EBITDA Electricity & Renewables (M$) (5) |
1,097 |
946 |
+16% |
|
120 |
131 |
104 |
+15% |
incl. from renewables business |
341 |
334 |
+2% |
(1) Includes 20% of Adani Green Energy Ltd’s gross capacity effective first quarter 2021.
(2) Includes 50% of Clearway Energy Group’s gross capacity effective third quarter 2022.
(3) End of period data.
(4) Solar, wind, biogas, hydroelectric and combined-cycle gas turbine (CCGT) plants.
(5) TotalEnergies share (% interest) of EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) in Electricity & Renewables affiliates, regardless of consolidation method.
Gross installed renewable power generation capacity reached 16.0 GW at the end of the third quarter 2022, up 4.4 GW from the previous quarter, including 3.8 GW related to the acquisition of 50% of Clearway Energy Group in the United States and 160 MW related to the start-up of the Seagreen offshore wind farm in Scotland.
Gross power generation capacity in development increased by 12.5 GW quarter-on-quarter, mainly due to the acquisition of 50% of Clearway Energy Group in the United States.
Net electricity generation stood at 8.5 TWh in the third quarter 2022, up 79% year-on-year thanks to higher utilization rates of flexible power plants (CCGT) as well as growth in electricity generation from renewable sources.
EBITDA from the Electricity & Renewables business reached $460 million in the third quarter 2022, up 58% year-on-year due to the growth of the business.
4.1.2 Results
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
In millions of dollars |
9M22 |
9M21 |
9M22 |
|
3,649 |
2,555 |
1,608 |
x2,3 |
Adjusted net operating income* |
9,255 |
3,484 |
x2,7 |
|
1,888 |
1,219 |
755 |
x2,5 |
including adjusted income from equity affiliates |
4,537 |
1,375 |
x3,3 |
|
|
|
|
|
|
|
|
|
|
653 |
341 |
639 |
+2% |
Organic investments |
1,253 |
2,150 |
-42% |
|
1,718 |
(58) |
(941) |
ns |
Net acquisitions |
2,301 |
1,119 |
x2,1 |
|
2,371 |
283 |
(302) |
ns |
Net investments |
3,554 |
3,269 |
+9% |
|
|
|
|
|
|
|
|
|
|
2,683 |
2,360 |
1,720 |
+56% |
Operating cash flow before working capital changes ** |
7,628 |
3,683 |
x2,1 |
|
4,390 |
3,970 |
(463) |
ns |
Cash flow from operations *** |
8,675 |
884 |
x9,8 |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to lease contracts, excluding the impact of contracts recognized at fair value for the sector and including capital gains on the sale of renewable projects.
*** Excluding financial charges, except those related to leases.
Adjusted net operating income for the iGRP segment was:
- $3,649 million in the third quarter 2022, 2.3 times the same quarter last year, thanks to higher LNG prices, the performance of gas, LNG and electricity trading activities and the growing contribution of Electricity & Renewables,
- $9,255 million over the first nine months of 2022, 2.7 times the same period last year for the same reasons.
The iGRP segment’s cash flow was as follows:
- $2,683 million in the third quarter 2022, up 56% year-on-year, thanks to higher LNG prices, the performance of gas, LNG and electricity trading activities and the growing contribution of Electricity & Renewables, despite a lag effect on dividends received from equity affiliates,
- $7,628 million over the first nine months of 2022, 2.1 times the same period last year for the same reasons.
Operating cash flow was $4,390 million for the quarter, mainly due the positive impact on working capital requirements of margin call reductions and the seasonality of the gas and electricity supply business.
4.2 Exploration & Production
4.2.1 Production
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
Hydrocarbon production |
9M22 |
9M21 |
9M22 |
|
2,251 |
2,276 |
2,281 |
-1% |
EP (kboe/d) |
2,292 |
2,290 |
– |
|
1,454 |
1,430 |
1,450 |
– |
Liquids (kb/d) |
1,450 |
1,435 |
+1% |
|
4,300 |
4,602 |
4,543 |
-5% |
Gas (Mcf/d) |
4,569 |
4,672 |
-2% |
4.2.2 Results
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
In millions of dollars, except effective tax rate |
9M22 |
9M21 |
9M22 |
|
4,217 |
4,719 |
2,726 |
+55% |
Adjusted net operating income* |
13,951 |
6,914 |
x2 |
|
377 |
287 |
315 |
+20% |
including adjusted income from equity affiliates |
1,019 |
864 |
+18% |
|
55.4% |
47.2% |
46.4% |
– |
Effective tax rate** |
49.9% |
42.5% |
– |
|
|
|
|
|
|
|
|
|
|
1,989 |
1,873 |
1,656 |
+20% |
Organic investments |
5,288 |
4,494 |
+18% |
|
(126) |
2,225 |
(34) |
ns |
Net acquisitions |
2,415 |
(5) |
ns |
|
1,863 |
4,098 |
1,622 |
+15% |
Net investments |
7,703 |
4,489 |
+72% |
|
|
|
|
|
|
|
|
|
|
6,406 |
7,383 |
4,943 |
+30% |
Operating cash flow before working capital changes *** |
21,092 |
13,029 |
+62% |
|
9,083 |
8,768 |
4,814 |
+89% |
Cash flow from operations *** |
23,619 |
13,385 |
+76% |
* Details on adjustment items are shown in the business segment information annex to financial statements.
** Tax on adjusted net operating income / (adjusted net operating income – income from equity affiliates – dividends received from investments – impairment of goodwill + tax on adjusted net operating income).
*** Excluding financial charges, except those related to leases.
Adjusted net operating income from Exploration & Production was:
- $4,217 million in the third quarter 2022, up 55% year-on-year, thanks to the sharp rise in oil and gas prices,
- $13,951 million for the first nine months of 2022, double the same period last year for the same reasons.
Cash flow was $6,406 million in the third quarter 2022 compared to $4,943 million a year earlier and increased by 62% to $21,092 million in the first nine months of 2022, benefiting from the sharp increase in oil and gas prices.
Adjusted net operating income and cash flow for the third quarter of 2022 were down $502 million and $977 million respectively compared to the second quarter, mainly due to the impact of Energy Profits Levy in the United Kingdom for $0.6 billion.
4.3 Downstream (Refining & Chemicals and Marketing & Services)
4.3.1 Results
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
In millions of dollars |
9M22 |
9M21 |
9M22 |
|
2,413 |
3,226 |
1,040 |
x2,3 |
Adjusted net operating income* |
7,031 |
2,495 |
x2,8 |
|
|
|
|
|
|
|
|
|
|
453 |
586 |
506 |
-10% |
Organic investments |
1,332 |
1,309 |
+2% |
|
(6) |
(91) |
17 |
ns |
Net acquisitions |
(131) |
(87) |
ns |
|
447 |
495 |
523 |
-15% |
Net investments |
1,201 |
1,222 |
-2% |
|
|
|
|
|
|
|
|
|
|
2,944 |
3,548 |
1,611 |
+83% |
Operating cash flow before working capital changes ** |
8,388 |
3,943 |
x2,1 |
|
4,737 |
4,106 |
1,644 |
x2,9 |
Cash flow from operations ** |
10,848 |
5,974 |
+82% |
* Detail of adjustment items shown in the business segment information annex to financial statements.
** Excluding financial charges, except those related to leases.
4.4 Refining & Chemicals
4.4.1 Refinery and petrochemicals throughput and utilization rates
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
Refinery throughput and utilization rate* |
9M22 |
9M21 |
9M22 |
|
1,599 |
1,575 |
1,225 |
+31% |
Total refinery throughput (kb/d) |
1,497 |
1,147 |
+31% |
|
431 |
395 |
274 |
+57% |
France |
359 |
179 |
x2 |
|
656 |
648 |
505 |
+30% |
Rest of Europe |
637 |
553 |
+15% |
|
512 |
532 |
446 |
+15% |
Rest of world |
501 |
415 |
+21% |
|
88% |
88% |
69% |
– |
Utlization rate based on crude only** |
84% |
62% |
– |
* Includes refineries in Africa reported in the Marketing & Services segment.
** Based on distillation capacity at the beginning of the year, excluding Grandpuits (shut down first quarter 2021) from 2021 and Lindsey refinery (divested) from second quarter 2021.
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
Petrochemicals production and utilization rate |
9M22 |
9M21 |
9M22 |
|
1,299 |
1,206 |
1,486 |
-13% |
Monomers* (kt) |
3,910 |
4,315 |
-9% |
|
1,171 |
1,187 |
1,330 |
-12% |
Polymers (kt) |
3,632 |
3,707 |
-2% |
|
80% |
71% |
93% |
– |
Steamcracker utilization rate** |
79% |
89% |
– |
* Olefins.
** Based on olefins production from steam crackers and their treatment capacity at the start of the year.
Refinery throughput:
- increased by 31% year-on-year in the third quarter 2022, due to the recovery in demand, particularly in Europe and the United States, the restart of the Donges refinery in France in the second quarter 2022 and the Leuna refinery in Germany which had a major scheduled turnaround in 2021,
- increased by 31% year-on-year for the first nine months, for the same reasons as well as the restart, in 2021, of the distillation unit at the Normandy refinery in France.
Monomer production was down 13% in the third quarter 2022, mainly due to lower demand in Asia and unplanned shutdowns at Normandy in France and Antwerp in Belgium.
4.4.2 Results
|
3Q22 |
2Q22 |
3Q21 |
3Q22 |
In millions of dollars |
9M22 |
9M21 |
9M22 |
|
1,935 |
2,760 |
602 |
x3,2 |
Adjusted net operating income* |
5,815 |
1,356 |
x4,3 |
|
|
|
|
|
|
|
|
|
|
224 |
313 |
321 |
-30% |
Organic investments |
735 |
822 |
-11% |
|
1 |
(34) |
(6) |
ns |
Net acquisitions |
(33) |
(61) |
ns |
|
225 |
279 |
315 |
-29% |
Net investments |
702 |
761 |
-8% |
|
|
|
|
|
|
|
|
|
|
2,164 |
2,963 |
934 |
x2,3 |
Operating cash flow before working capital changes ** |
6,560 |
2,081 |
x3,2 |
|
3,798 |
3,526 |
799 |
x4,8 |
Cash flow from operations ** |
8,431 |
4,027 |
x2,1 |
*Detail of adjustment items shown in the business segment information annex to financial statements.
**Excluding financial charges, except those related to leases.
Adjusted net operating income for the Refining & Chemicals segment was:
- $1,935 million in the third quarter 2022, compared to $602 million in the third quarter 2021, due to high distillate margins in the context of reduced imports of Russian petroleum products, as well as the performance of crude oil and petroleum products trading activities,
- $5,815 million over the first nine months of 2022, 4.3 times the same period last year, due to high refining margins in Europe and the United States and better utilization rates, as a result of the restart of the Donges refinery in France in the second quarter 2022 as well as the Leuna refinery in Germany which had a major scheduled turnaround in 2021.
Cash flow also rose sharply to $2,164 million in the third quarter 2022, 2.3 times higher than in the third quarter 2021, and to $6,560 million in the first nine months of 2022.
In the third quarter 2022, adjusted net operating result and cash flow were down $825 million and $799 million respectively, compared to the second quarter 2022, due to lower gasoline margins in Europe and the United States.
Contacts
TotalEnergies
