It is not just the price of gasoline, gas and electricity that are increasing.

The cash flow from TotalEnergies too.

And the two are closely related.

The French giant announced Thursday that its net profits stood at $ 4.6 billion in the third quarter.

An amount multiplied by 23 in a year.

"The global economic recovery, especially in Asia, led to a sharp rise in the prices of all energies in the third quarter," said Patrick Pouyanné, CEO of TotalEnergie, in a press release.

Up 66% compared to 2019

Net income of $ 4.6 billion compares to $ 202 million in the third quarter of 2020, a low level then due to the depression in prices.

But, comparing to the third quarter of 2019, before the Covid-19 crisis, this result still appears to be up sharply by 66%.

Adjusted net income - which excludes certain exceptional items and serves as a benchmark in the sector - has for its part multiplied by 5.6 over one year, to 4.8 billion.

The main explanation for this increase is therefore the rise in the price of hydrocarbons: oil but above all gas, particularly in its liquefied form (LNG), an activity in which the group is very active.

The trend should not reverse in the coming months

This surge in prices poses purchasing power problems in many countries, because it is reflected in the prices at the pump or in those of heating, with also repercussions on the electricity market, forcing governments to intervene. . Faced with this energy crisis, European leaders have recently appeared divided.

After hitting historic levels, gas prices are expected to remain elevated, the group believes, with most experts agreeing.

"The low level of gas stocks and demand which should remain strong, except for an exceptionally mild winter, are likely to keep gas prices in Europe and Asia at high levels until the second quarter of 2022" he.

The entire sector should benefit from this surge in prices.

Norway's Equinor posted strong results on Wednesday, dipping back into the green, while Shell quadrupled its adjusted profit on Thursday.

$ 13 billion in investments planned for 2021

TotalEnergies also benefited from an upturn in its hydrocarbon production, up 4% over one year in the third quarter, in particular thanks to strong demand for gas and the choice of oil-producing countries to put barrels back on the market. Marlet. It reached 2.8 million barrels of oil equivalent per day and should continue to climb in the fourth quarter, to a level between 2.85 and 2.9 million.

Despite the windfall of soaring prices, the group wants to maintain its "discipline on costs", with planned investments close to 13 billion dollars in 2021, including 3 billion devoted to renewables and electricity. The former Total, which has renamed itself to demonstrate its diversification, is indeed seeking to develop in these sectors. Like all companies originally from oil activity, it is under pressure to diversify into areas compatible with the objectives of limiting global warming.

The group also announced Thursday that it was planning up to 200 million euros in France to equip more than 150 of its stations on motorways and expressways with high-power charging stations for electric vehicles.

"Thanks to the revenues generated by our hydrocarbon activities, we can invest massively in charging infrastructure for electric vehicles and thus accelerate our transformation," said Alexis Vovk, general manager of marketing and services.

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  • Business

  • energy

  • Gas

  • Gas prices

  • Total

  • Gasoline prices

  • Fuel

  • Gasoline

  • Economy

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