France-based Total reported a 9 percent rise in its LNG sales but logged a sharp drop in quarterly profit.
Total’s net income declined by 93 percent to $202 million in the third quarter while adjusted net income slid 72 percent to $848 million.
Total attributed the decline to lower oil, gas, and LNG prices and the effects related to the Covid-19 coronavirus pandemic.
On the other side, Total’s LNG sales increased to 8.1 million tonnes compared to 7.5 million tonnes in the third quarter last year.
In the January-September period, Total sold 28.3 million tonnes of LNG, a rise of 19 percent year-on-year.
Total attributed the rise to higher trading activities but also due to ramp-up of Novatek’s Yamal LNG project in Russia and the Inpex-operated Ichthys development in Australia.
Additionally, the rise in LNG sales was due to the start-up of first two trains at Sempra’s Cameron LNG plant in the US.
Total said its third-quarter LNG prices averaged 3.57/MMBtu, dropping 19 percent compared to the previous quarter and 23 percent year-on-year.
Looking ahead, the energy giant said it expects the rise in oil prices in the second and the third quarter will have a positive impact on its LNG prices. Total sees average LNG price in the fourth quarter above 4/MMBtu.
Total also added the oil and gas market environment remains uncertain and will depend on the speed of global demand recovery, affected by the pandemic.