Total reports robust 1Q as it sells oil sands assets

Market: Crude oil, Natural gas
27/04/23

TotalEnergies reported robust first-quarter results on Thursday as it announced an agreement to sell its Canadian oil sands assets for up to $4.55bn.

Canadian energy company Suncor is to acquire all of TotalEnergies EP Canada for an initial cash payment of $4.1bn, with additional payments that could reach up to $450mn. TotalEnergies indicated that some proceeds from the transaction could find their way back to shareholders in line with its plan to allocate at least 40pc of the cash flows from operations generated during 2023 to share buybacks or special dividends.

The major announced in September last year plans to spin off its Canadian oil sands assets in 2023, but received several unsolicited offers in the last month, including one from Suncor. TotalEnergies said the deal with Suncor is comparable to its valuation estimates for its initially planned spin off. Analysts at investment bank RBC Capital Markets described the deal as "a clean exit for TotalEnergies".

The French major's bottom-line financial performance in the first quarter of 2023 remained steady, despite liquids and gas realised prices being lower by 9pc and 30pc respectively than in the previous quarter, and down by 19pc and 28pc, respectively, on the year.

TotalEnergies' profit of $5.56bn was greater than the $4.94bn it reported in the first quarter of last year and the $3.26bn in the fourth quarter of 2022. The result was largely thanks to a much lower tax bill, with TotalEnergies paying $4.07bn of income taxes during the first quarter against $6.08bn in the preceding quarter.

TotalEnergies' adjusted profit was $6.5bn. This was 27pc lower than that in January-March 2022 but in line with analysts' expectations.

The company reported cash flow from operations for the first quarter of $5.1bn, down by 33pc on the year. Its net-debt-to-capital ratio — or gearing — increased to 11.5pc from 7pc over the three months to 31 March.

Oil and gas production was lower on the quarter and the year at 2.52mn b/d of oil equivalent compared with 2.81mn boe/d in the fourth quarter 2022 and 2.84mn boe/d in the first quarter 2022.

Oil production was 3pc greater than in the preceding quarter at 1.4mn b/d while the company's gas output fell 23pc to 1.12mn boe/d. LNG sales were down by 13pc on the previous quarter at 11mn t.

The major said that excluding its share of production from Russia's Novatek, output was up by 1pc year on year and up by 2pc compared with the fourth quarter of 2022. TotalEnergies took a $4.1bn write-down related to Novatek in the fourth quarter, after it decided no longer to equity account for its 19.4pc stake.

It anticipates its production to remain around 2.5mn boe/d in the second quarter, with LNG sales benefiting from the restart of Freeport LNG.

In the downstream, refinery throughput at 1.4mn b/d was up by 6pc year on year and by 1pc on the quarter. The utilisation rate was also higher at 78pc, against 77pc in October-December. The company said its utilisation rate could improve to beyond 80pc during the current quarter given the end of strikes in France.

In its petrochemicals segment, monomer and polymer production was up by 18pc and by 21pc, respectively, in the first quarter compared with October-November, but it was down by 8pc and 13pc, respectively, year on year.

TotalEnergies chief executive Patrick Pouyanne said that the first quarter once again demonstrated the company's "ability to generate strong results" despite the lower oil and gas price environment.

TotalEnergies confirmed that it expects to spend $16bn-$18bn on capital investments during 2023, including $5bn in low-carbon energies.

By Jon Mainwaring

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17/12/25

Australia coal, Fe prices to fall; LNG up: Treasury

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17/12/25

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17/12/25

US to blockade Venezuela oil flows: Trump

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Venezuela crude flows slow, Cuba feels sting

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16/12/25

Venezuela crude flows slow, Cuba feels sting

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US House clears hurdle to pass permitting bill

16/12/25

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16/12/25

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Workers at Australia’s Pluto LNG set to strike

16/12/25

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16/12/25

Workers at Australia’s Pluto LNG set to strike

Adelaide, 16 December (Argus) — Staff working for project contractor Bechtel building the 5mn t/yr second train at Australia's 4.9mn t/yr Pluto LNG terminal are set to strike from next month. The Offshore Alliance (OA) workers' union have provided notice to Bechtel and action starts at 6am local time on 5 January 2026, a union spokesman said on 16 December. Bechtel continues to engage constructively with its employees on the Pluto train 2 enterprise bargaining agreement (EBA), a spokeswoman said, adding that work onsite continues safely, and Bechtel remain focused on the successful completion of the project Hundreds of union members represented by the OA voted to authorise protected industrial action via ballots published by the Fair Work Commission on 4 December allowing an unlimited number of stoppages at the site from 30 minutes to 24 hours in length. But a new vote on the EBA is planned to take place on 20 December, which could see the industrial action cancelled. The present EBA covering Bechtel's workers expires on 19 December, Argus understands. Australian independent Woodside Energy is the operator of the Pluto project, which is planning to produce 8mn t/yr of LNG from its Scarborough gas field offshore Western Australia later next year. A Woodside spokesman told Argus the industrial dispute is a matter for Bechtel, its workforce and its unions. Train 2 is due to come on line in the second half of 2026, Woodside has said, while train 1 modifications will be completed by early 2027 ahead of that facility processing an eventual 3mn t/yr of Scarborough's drier gas . By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Total reports robust 1Q as it sells oil sands assets

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