The results of Total Energy’s business in the first quarter of 2023 showed a significant decline, which the French energy company attributed to the recent decline in oil and gas prices. Adjusted net income decreased by 27% year-on-year; To record $6.541 billion, compared to $8.977 billion in the first quarter of 2022.
Net cash flow amounted to $3.201 billion in the first quarter of 2023, a decline of 63% compared to the same quarter of 2022, which amounted to $8.723 billion, according to Total Energy business results seen by the specialized energy platform.
This is due to a decrease in cash flow by $2.005 billion, and an increase in net investment which was estimated at $3.517 billion to $6.420 billion this quarter.
Total Energy business results in the first quarter of 2023
Total Energy’s net income increased to $5.6 billion, up 20% compared to the same quarter of 2022, and up 70% compared to the fourth quarter of 2022.
While the adjusted net operating income from business segments decreased to $6.993 billion in the first quarter of 2023.
This represents a decline of 26% year-on-year; The company recorded $9.458 billion in the first quarter of 2022, according to Total Energy’s business results statement in the first quarter of 2023.
Cash flow from operations was $5.133 billion, compared to $9.621 billion of operating cash flow before working capital changes; This reflects an increase of $4.5 billion in working capital requirements.
The French company decided to distribute an interim initial dividend of 0.74 euros ($0.82) per share for fiscal year 2023, an increase of 7.25% compared to the 3 interim dividends paid for fiscal year 2022, and identical to the final ordinary dividend for fiscal year 2022.
Patrick Pouyanné, CEO of the company, said: “Total Energy once again demonstrates its ability to deliver strong results, reporting in the first quarter of 2023 adjusted net income of $6.5 billion, cash flow of $9.6 billion, and a return on average capital employed of 1%. 25%, in an environment characterized by low oil and gas prices.
Total Energy production of oil and gas
The French energy company announced that oil and gas production reached 2.524 million barrels of oil equivalent per day in the first quarter of 2023, up 1% year-on-year.
The adjusted net operating income for exploration and production amounted to $ 2.653 billion in the first quarter of 2023, according to the results of Total Energy’s business in the first quarter of 2023, which represents a decrease of 22% on a quarterly basis, due to the decline in oil and gas prices. And also a decrease of 45% on an annual basis for the same reasons, as well as higher taxes, especially in the United Kingdom.
Operating cash flow before working capital changes in the first quarter of 2023 was approximately $4.907 billion, down 3% on a quarterly basis; This reflects the decrease in gas and oil prices in the first quarter of 2023 and the exceptional taxes during the fourth quarter of 2022.
Total Energy production of liquefied natural gas
The French energy company’s LNG production increased by 7% year-on-year, due to the restart of the Snovet field in Norway during the second quarter of 2022.
The company reported that overall LNG sales in the first quarter of 2023 fell 17% year-on-year, mainly due to lower spot volumes, linked to lower demand in Europe due to mild winter weather and rising inventories.
Adjusted net operating income for liquefied gas amounted to $2.072 billion in the first quarter, according to Total Energy’s business results statement in the first quarter of 2023, which was seen by the specialized energy platform.
This represents a decrease of 10% qoq due to lower oil and gas prices; As well as a decrease of about 25% on an annual basis due to the decline in sales and prices of liquefied gas.
Operating cash flow before working capital changes for LNG was $2.081 billion in the first quarter of 2023; Down 23% qoq, 16% yoy, due to lower prices.
Cash flow from operations was $3.536 billion in the first quarter of 2023, linked to the positive impact on working capital.
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