Page 12 - EurOil Week 44 2021

EurOil PERFORMANCE EurOil

TotalEnergies profits spike on high prices

FRANCE FRENCH major TotalEnergies enjoyed a surge TotalEnergies said high gas prices in Europe
in adjusted net profit to $4.8bn in the third quar- and Asia were here to stay into the second
TotalEnergies expects ter, from $848mn a year earlier, attributing the quarter of 2022, as demand remains high and
high prices to stay into result to soaring energy prices in Europe and. supply limitations continue. The company said
2022. Asia. its average sales price for LNG was expected
The company’s core earnings climbed to to exceed $12 per mmBtu in the final quarter
$11.2bn, while cash flow from operations rose of the year, rising from $9.10 in the previous
30% to $5.64bn. TotalEnergies achieved the big- three months.
gest improvement at its integrated gas, renewa- TotalEnergies produced 2.814mn barrels of
bles and power business, where earnings grew by oil equivalent per day in the third quarter, up 4%
$1.61bn from $285mn a year earlier. Upstream year on year on the back of new projects com-
income also surged to $2.73bn from $801mn. ing on stream in Brazil, Libya and Russia, as
“The global economic recovery, notably in well as loosened OPEC+ restrictions on supply.
Asia, drove all energy prices sharply higher in It expected output to average between 2.85 and
the third quarter due to the interconnection of 2.90mn boepd in the last quarter of 2021.
energy systems,” CEO Patrick Pouyanne com- The company said its capital expenditure plan
mented. “Gas prices in Asia and Europe, up more for 2021 would remain unchanged from the level
than 85% from the previous quarter, reached in 2020 at $13bn, of which $3bn will be spent on
unprecedented levels, and oil prices gained 7%, renewables and electricity. It intends to buy back
continuing their steady year-long rise.” $1.5bn of shares in the fourth quarter. ™

Lundin rewards shareholders

after tripling Q3 profits

SWEDEN SWEDISH player Lundin Energy has said it will Sverdrup field. Output at both projects soared,
raise dividends for 2021 by 25% after nearly tri- raising Lundin’s production rate to 193,600 bar-
Lundin hailed the pling its net profit in the third quarter. rels of oil equivalent per day in the third quarter,
numbers as the The Norway-focused company’s EBIT for up from 157,500 boepd a year before.
result of “continued the three-month period came to $1.07bn, ver- Lundin said it expected to achieve towards
strong operational sus $362mn a year earlier, on the back of record the upper end of its production guidance for this
performance.” oil and gas flow and higher prices. It achieved an year of 180,000-195,000 boepd. Further ahead,
adjusted net result of $234mn, versus $75.8mn it can look forward to the launch of Sverdrup’s
in Q3 2020, and generated $674mn in free cash second stage in the fourth quarter of 2022. At full
flow (FCF), compared with $164mn a year ear- capacity, the field will deliver a gross output of
lier. It managed to reduce its net debt to $2.65bn, 755,000 boepd.
from $3.71bn. “At the Greater Edvard Grief Area we’re deliv-
Lundin CEO Nick Walker hailed the num- ering on our projects that support the long-term
bers as the result of “continued strong opera- plateau extension, with excellent results from the
tional performance and further strengthening completed Edvard Grieg infill well programme,
of oil and gas prices.” and first oil achieved at the Rolvsnes and Solveig
“Whilst certain challenges of the [coronavirus] projects,” Walker continued. “All these projects
COVID-19 crisis remain, we’ve normalised the delivered on schedule and below budget.”
management of these and continue to deliver on The CEO is anticipating the company to
our key business priorities,” he commented in a increase its reserves at the end of the year, as a result
statement. “Our world-class producing assets keep of successful work carried out at Grieg and Solveig.
on outperforming, with excellent production effi- “There’s lots more upside in the area and we’re
ciency and industry-leading low operating costs, working hard to bring forward a number of new
delivering record production in the third quarter.” projects,” he said.
Lundin said it would propose raising its divi- Lundin also wants to establish the Barents Sea
dend for 2021 to $2.25 per share, or a combined as another major source of its production. It has
payout of $640mn, versus $1.8 per share paid for agreed to buy an extra 25% stake in the Wisting
2020. oil discovery in the Barents Sea from Austria’s
Lundin counts the Edvard Krieg field in the OMV for at least $320mn, raising its ownership
North Sea as its flagship operated asset, and it to 35%. The find contains 500mn boe and is on
also has a 20% stake in the Equinor-run Johan track to start up in 2028. ™

P12 www. NEWSBASE .com Week 44 04•November•2021