BAKU, Azerbaijan, November 7. TotalEnergies expects that its average LNG selling price in the fourth quarter of 2023 will likely exceed $10 per Mbtu, Trend reports.
According to the company, in the third quarter of 2023, the adjusted net operating income (excluding Novatek) for Integrated LNG amounted to $1.342 billion, representing a 53-percent decrease compared to the previous year. This decline was primarily attributed to lower LNG prices, as well as exceptional trading results in the third quarter of 2022. However, it was partially mitigated by increased production.
In the same quarter of 2023, the cash flow from operations, excluding working capital (CFFO), for Integrated LNG reached $1.648 billion, marking a 34-percent year-on-year reduction (excluding Novatek). The decrease was primarily due to lower LNG prices, although it was partially offset by the favorable margins realized in 2022 on LNG shipments scheduled for delivery in 2023.
Thus, TotalEnergies has set its LNG selling price range for the next quarter of 2023 with the consideration of the recent fluctuations in oil and gas prices and the time delay in pricing mechanisms.
Meanwhile, TotalEnergies' LNG sales in the third quarter of 2023 amounted to 10.5 Mt. LNG sales remained steady compared to the previous year (10.4 Mt in 3Q2022), but experienced a decrease when compared to the previous quarter (11 Mt in 2Q2023).
