Global Energy TitBits￼
TotalEnergies Posts $5.7bn Q2 Income
TotalEnergies booked a net income of $5.7 billion for the second quarter, which was 2.6 times higher than the income for the same period of 2021. Adjusted net income per share surged nearly threefold year over year to $3.75, beating the analyst consensus of $3.69 per-share earnings.
Cash flow from operations more than doubled to $16.3 billion for the second quarter compared to the same quarter last year. “Russia’s invasion of Ukraine continued to impact energy markets in the second quarter, with oil prices averaging more than $110/bbl in the quarter, refining margins reaching record-high levels, and natural gas prices holding above oil parity in Europe and Asia,” TotalEnergies’ chief executive Patrick Pouyanné said, commenting on the results.
The supermajor’s LNG sales rose to more than 25 Mt in the first half of 2022, with 60% in Europe, and TotalEnergies’ refineries raised their utilization rate to nearly 90%, Pouyanné added.
Germany’s Household Heating Bills Could Triple
Germany plans to introduce a levy for all its gas consumers beginning in October as the government looks to avoid a wave of collapsing gas-importing and gas-trading companies amid record-high natural gas prices, a new bill seen by Reuters showed on Thursday.
Under the plans of the government, all consumers of gas, including households, will have to pay an additional levy, which will go to support Germany’s gas importing companies, which struggle with a lack of Russian gas and sky-high prices of non-Russian alternatives. The details of the bill are set to be announced next month.
“One doesn’t know exactly how much (gas) will cost in November, but the bitter news is that it’s definitely a few hundred euros per household,” German Economy Minister Robert Habeck was quoted by Reuters as saying on Thursday.
Shell Posts Record Profit As Commodity Prices Rally
Shell reported on Thursday another record in quarterly earnings of $11.472 billion for the second quarter, up from the previous record earnings of $9.130 billion booked for the first quarter this year, and more than double the $5.534 billion in earnings for the second quarter of last year. The Q2 2022 earnings were also ahead of analyst expectations of $11 billion.
The higher earnings mainly reflected higher realized prices, higher refining margins, and higher gas and power trading and optimization results, Shell said.
Cash flow from operating activities jumped by 26% sequentially to $18.655 billion. Following the record results, Shell announced a share buyback program of $6 billion, which is expected to be completed by the third-quarter 2022 results announcement.
These share repurchases will add to the $8.5 billion buyback program for the first half of 2022, which was completed in early July. “With the current energy sector outlook and subject to Board approval, shareholder distributions are expected to remain in excess of 30% of cash flow from operating activities,” Shell said.