Total release 3Q18 results

The highlights are as follows:

• Started production at Kaombo in Angola, Ichthys LNG in Australia and the second train at Yamal LNG in Russia.
• Signed an agreement to increase its share in the Danish Underground Consortium in Denmark.
• Signed a new concession contract with Sonatrach for the TFT Sud permit in Algeria.
• Three positive exploration wells : Glendronach in the UK, Shwe Yee Htun 2 in Myanmar and Sururu in Brazil.
• Sold its interest in the Joslyn oil sands project in Canada.
• Finalised the acquisition of Engie’s LNG business: Total becomes second-largest publicly-traded NG player in the world.
• Finalised the acquisition of Direct Energie.
• Acquired two gas-fired power plants (Combined Cycle Gas Turbine) from KKR-Energas.
• Sold its interest in the Hazira LNG terminal in India and signed an LNG contract with Shell.
• Final investment decision for a new 625 kt/y polyethylene unit at Bayport in the US.
• Launched engineering studies with Saudi Aramco for a giant petrochemical complex at Jubail in Saudi Arabia.
• Signed a shareholder agreement with Sonatrach to create a petrochemical complex at Arzew in Algeria.
• Sold its polystyrene activities in China to INEOS Styrolution.
• Acquired G2mobility, a company specialising in charging solutions for electric vehicles.
• Alliance with private Indian partner Adani to develop LNG and retail fuel in India.

Commenting on the results, Chairman and CEO Patrick Pouyanné said:

“Total’s third quarter adjusted net income increased by 48% from last year to US$4.0 billion, while oil prices increased by 44% to US$75/b supported by supply tensions and the geopolitical context. Debt-adjusted cash flow (DACF) increased by 37% to US$7.5 billion and return on equity rose to 11.9% over the past twelve months.”

“These results confirm the group’s ability to take full advantage of the favorable environment and to deliver on its objectives for production growth and cost discipline thanks to very good operational efficiency.”

“Exploration & Production doubled its adjusted net operating profit to US$2.9 billion in the third quarter. Production rose to 2800 boe/d, an increase of 8.6% compared to a year ago. Notably during the quarter, major project start-ups included Kaombo in Angola, Ichthys LNG in Australia and the second train of Yamal LNG in Russia. Production growth for 2018 will be close to 8%.”

“Also, exploration had significant success with the wells of Glendronach in the UK, Shwee Yee Htun 2 in Myanmar and Sururu in Brazil.”

“In addition, Total finalised the acquisition of Engie’s LNG business to become the second-largest publicly-traded LNG player in the world, as well as Direct Energie, accelerating the growth of its low carbon electricity business.”

“Finally, despite a highly volatile environment for European refining margins, the excellent availability of its units allowed the downstream to generate US$1.8 billion of cash flow in the third quarter. The group continued to implement its petrochemicals growth strategy by launching a major project in cooperation with Saudi Aramco in Saudi Arabia. Total continues to expand in fast-growing markets by partnering with the Adani group to develop its LNG business and a retail network in India.”

“In line with the announced shareholder return policy, the group has increased the 2018 interim dividends by 3.2%. In addition, the group has bought back US$1 billion of its shares at the end of September and confirms its intent to complete US$1.5 billion of buybacks for the full-year 2018.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26102018/total-release-3q18-results/