French oil and gas giant TotalEnergies reported Thursday a 35% plunge in its adjusted net profit to $6.5 billion for the third quarter of 2023 from a record $9.9 billion for the same period a year ago due to a drop in energy prices.
TotalEnergies said its third-quarter net profit came in at $6.7 billion compared with $6.6 billion in the year-ago period and $4.1 billion in the previous quarter, according to its financial statement released Thursday.
The company's profits were supported by its expansion of renewable capacity and integration, along with the sustained high oil prices, despite a drop from the decade-plus peak seen last year due to Russia's invasion of Ukraine.
TotalEnergies' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 33% year-on-year to $13.1 billion, compared to $19.4 billion for the year-ago period.
The oil and gas major's electricity business achieved adjusted operating income and cash flow surpassing $500 million for the first time during the quarter, driven by increased renewable power generation.
Net power generation totaled 8.9 terawatt-hours (TWh), up 4% year-on-year, due to higher generation from renewables in the wake of the full integration of renewable company Total Eren and solar power in the US, the statement added.
TotalEnergies also said it would buyback $9 billion worth of shares for the full year. The firm distributed its third quarter interm dividend of $7.8 (€7.4) per share, an increase of 7.3% compared to the three interim dividends paid last year, it said.
Oil prices remained positive at around $90 per barrel at the beginning of the fourth quarter, it said.
A 2 million barrel per day increase in petroleum products this year was driven by emerging countries, notably due to a recovery in the aviation sector and demand from China's petrochemical industry, TotalEnergies added.
$27.4 billion. This is TotalEnergies' cash flow from operations during the first nine months of 2023. In third quarter alone, cash flow amounted to $9.3 billion.
The company expects $4.1 billion in cash proceeds in the next quarter by disinvesting its Canadian assets, it said.
