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TotalEnergies full-year earnings slide 36% as LNG prices drop

(Montel) French energy major TotalEnergies posted a 36% year-on year drop to USD 23.2bn in adjusted net income in 2023 amid lower prices for oil, gas and refining margins, it said on Wednesday.

Adjusted net operating income from the group’s LNG unit dived 44% to USD 11.17bn as the average price of the chilled fuel slid 32% to USD 10.76/MMbtu.

LNG sales dropped 8% year on year to 44.3m tonnes, the company said, which it attributed to lower spot volumes related to weaker demand in Europe as a result of a milder winter weather and high inventories.

TotalEnergies expected its average LNG selling price to be stable around USD 10/MMbtu in the first quarter of 2024 “given the evolution of oil and gas prices in recent months and the lag effect on price formulas”.

The firm also expects LNG sales to exceed 40m tonnes over the year.

Meanwhile, its gas price fell 50% to USD 6.64bn/MMbtu in 2023.

Generation earnings double
The firm’s adjusted net operating income from its power division nearly doubled (up 90%) year on year to USD 1.85bn, due to the growth in power generation from renewables, it said.

This came as TotalEnergies’ gross installed renewables generation capacity stood globally at 22.4GW at the end of the year, a 33% increase.

Its net power output from green sources jumped 82% in 2023, compared to 2022, to 18.9 TWh

Updates article published at 8:47 CET with new details.