France-based Total logged a 22 percent rise in its LNG sales as it reported a 96 percent drop in second-quarter net profit.
Total reported a net income of $126 million, hit by lower oil and gas prices and the effects related to the Covid-19 coronavirus pandemic.
However, Total still managed to post a profit in the second quarter as its peers like Shell and Chevron posted huge losses due to impairments.
Furthermore, the company’s LNG sales increased to 10.4 million tonnes compared to 8.5 million tonnes in the second quarter last year.
In the January-June period, Total sold 20.2 million tonnes of LNG, a rise of 24 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 second-quarter LNG prices averaged 4.40/MMBtu, dropping 30 percent compared to the previous quarter and 23 percent year-on-year.
Looking ahead, the energy giant said it expects “significant” deffered LNG liftings from long-term buyers in the third quarter.
Total also added that it anticipates the decline in oil prices in the second quarter to have an “impact” on long-term LNG contract prices in the second half.