Page 10 - GLNG Week 07 2022
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GLNG                                             EUROPE                                                GLNG


       Novatek profits soar on




       high gas prices in 2021




        PERFORMANCE      EBITDA at Russian LNG exporter Novatek rose   In its conference call, Novatek highlighted
                         by 90% in 2021, landing at RUB748bn ($9.9bn),  the progress it had made in delivering on its
                         the company reported on February 16, attribut-  energy transition strategy. Novatek has sought
                         ing the result to soaring oil and gas prices.  to improve environmental social and governance
                           The operator of the Yamal LNG termi-  (ESG) reporting of its emissions. In the fourth
                         nal generated RUB433bn in net profit for the  quarter of 2021, it launched satellite tracking of
                         year, up from RUB67.8bn, as revenues grew to  methane emissions at its assets, and detected no
                         RUB1.16 trillion, from RUB711.8bn. Besides  leaks or uncontrollable emissions.
                         higher prices, the results were buoyed by a 3.3%   Meanwhile, pre-FEED work on the planned
                         growth in natural gas production, supported by  Obskiy Gas Chemical Complex continues, with
                         the launch of three deposits in the North-Russkiy  a report due to be published in the next few
                         cluster in Western Siberia.          weeks. That means the project might progress
                           Analysts at VTB Capital (VTBC) noted  to the next phase, FEED work, in the second
                         that 25% of sales from Novatek’s flagship 17mn  quarter. Novatek also pointed to the certifica-
                         tonne-per-year Yamal LNG plant are spot-based,  tion of sites for carbon capture utilisation and
                         with the rest tied to oil prices under long-term  storage (CCUS) on the Yamal and Gydan pen-
                         contracts. This helped the company capitalise on  insulas, as well as its non-binding agreement to
                         soaring LNG prices in Asia and Europe.  deliver 1.2mn tonnes of ammonia annually to
                           The company’s capital investment guidance  Germany’s Uniper. The main hurdle for CCUS
                         of $2.6bn exceeds VTBC’s expectation of $2.2bn,  development in Russia is legislative, Novatek
                         the brokerage said, creating some extra risk to  said, as the government is yet to introduce the
                         free cash flow. VTBC expects Novatek’s hydro-  appropriate regulation. The company added
                         carbon sales to be flat this year, in line with only  that it could provide CCUS services for third
                         a 1% predicted uptick in production.  parties in the future.™


       TotalEnergies profits soar in Q4 on




       strong LNG, power performance




        PERFORMANCE      CORE earnings (adjusted EBITDA) at French  prices, while downstream profit doubled to
                         major TotalEnergies soared to a record $14.3bn  $1.03bn for $502mn as higher feedstock costs
                         in the final quarter of last year, up from $5.2bn  were offset by rebounding fuel demand.
                         a year earlier, primarily on the back of strong   “TotalEnergies’ multi-energy model demon-
                         results from its LNG and electricity businesses.  strated its ability to take full advantage of the very
                           The company’s integrated gas, renewables  favourable environment, particularly in the LNG
                         and power division climbed more than tenfold  and electricity sectors,” CEO Patrick Pouyanne
                         year on year to $2.76bn, from only $254mn. The  said.
                         main driver was a surge in the company’s average   TotalEnergies’ results were similar to those
                         LNG price to $13.12 per mmBtu, up from only  of other European majors such as BP, Equinor
                         $4.90, as the global market became unprecedent-  and Shell, all of which benefited from the spike
                         edly tight. LNG sales volumes also grew by 16%  in energy demand particularly in Europe, where
                         at 11.6mn tonnes, on the back of rising exports at  gas prices have spiked in recent months, as high
                         the Cameron LNG and Freeport LNG terminals  levels of consumption have been matched with
                         in the US.                           supply constraints, particularly in Russia.
                           Power generation increased by 57% to   And like its peers, TotalEnergies is also
                         6.7 TWh in the fourth quarter, supported by  expanding its rewards to shareholders in light of
                         increased contributions from renewables and  the stronger results. The company announced it
                         gas-fired power generation, supported by the  would be paying a dividend of €0.66 ($0.75) per
                         acquisition of four combined-cycle gas turbine  share for the final quarter of 2021, taking the full-
                         plants in France in the fourth quarter of 2020.  year total to €2.64 per share. It intends to boost
                           Upstream operating earnings more than tri-  interim dividends by 5% in 2022, and buy back
                         pled to $3.53bn, from $1.07bn, owing to higher  $2bn of shares during the first half of the year.™



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