Sun. Feb 5th, 2023

TotalEnergies posts document revenue of $9.9 blnShell revenue reaches $9.45 blnShell plans to spice up dividend

LONDON/PARIS, Oct 27 (Reuters) – Europe’s two largest vitality corporations Shell (SHEL.L) and TotalEnergies (TTEF.PA) reported income of greater than $9 billion within the third quarter, although Shell’s liquefied pure fuel (LNG) division struggled to seize the advantages of excessive gasoline costs.

The sturdy earnings have been more likely to intensify calls in Britain and the European Union for additional windfall taxes on vitality corporations to assist households deal with fuel and energy payments.

LNG costs have soared this 12 months as Moscow progressively reduce piped pure fuel provides to Europe, which closely trusted Russian imports.

Western sanctions on Russia, which is among the many world’s main oil and fuel producers, in response to its invasion of Ukraine in February, helped to drive European fuel costs to an all-time excessive in August.

They’ve fallen closely in current weeks as Europe has crammed fuel storage and temperatures have been unusually gentle, however costs are nonetheless greater than a 12 months in the past.

The world’s largest LNG dealer Shell missed a few of the good thing about the worth rise after a fall in manufacturing following strikes at Australia’s Prelude web site. It additionally mentioned its buying and selling was hit by “substantial variations between paper and bodily realisations in a risky and dislocated market”.

Its headline revenue in its built-in fuel unit was down nearly 40% on the earlier quarter.

General revenue of $9.5 billion was barely beneath final quarter’s document. Shell nonetheless determined to extend its dividend by 15% because it prepares for Wael Sawan to take the helm from Ben van Beurden subsequent 12 months.

TotalEnergies LNG, renewables and energy division reported a document earnings of $3.6 billion within the quarter, up $1.1 billion from the second quarter and greater than twice final 12 months’s, pushed by a 50% rise in LNG costs and a “sturdy” efficiency of its LNG buying and selling division.

This got here whilst its LNG gross sales volumes fell 10% on the quarter as a result of outages on the giant U.S. Freeport plant and elsewhere. General, TotalEnergies made a document quarterly revenue of practically $10 billion.

TotalEnergies greater than halved its debt-to-capital, or gearing, ratio to 4%, underlining its comparatively sturdy stability sheet. Gearing at Shell, which is on observe for a document 12 months of income, elevated barely to twenty.3%.

Regardless of their hefty income, shares of Shell and its European friends TotalEnergies and BP (BP.L) have to date this 12 months considerably under-performed their bigger U.S. rivals Exxon Mobil and Chevron whose enterprise fashions are weighted rather more in the direction of fossil fuels than renewables.

Whereas Shell and BP’s shares have gained round 40%, Exxon is up 75% and Chevron over 50%.

Shares in Norway’s Equinor have additionally gained 54%, spurred by the fuel worth surge.

Spain’s Repsol (REP.MC) on Thursday reported a doubling of its revenue to 1.48 billion euros ($1.49 billion).

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($1 = 0.9938 euros)

Further reporting by Benjamin Mallet; modifying by Barbara Lewis

Our Requirements: The Thomson Reuters Belief Rules.

Shadia Nasralla

Thomson Reuters

Writes concerning the intersection of company oil and local weather coverage. Has reported on politics, economics, migration, nuclear diplomacy and enterprise from Cairo, Vienna and elsewhere.