French energy giant TotalEnergies, one of the world’s largest LNG players, reported a drop in its average price for equity liquefied natural gas sales in the second quarter.
TotalEnergies said on Tuesday the average LNG price was $9.84/MMBtu in the April-June period, logging a significant decrease when compared to the previous three-month period but also year-on-year.
The price dropped about $3.43/MMBtu compared with the previous quarter, while it decreased $4.12/MMBtu from the same period in 2022.
“Despite the expected significant impact of a less favorable environment on results from the integrated LNG segment, illustrated by an average LNG price near $10$/MMBtu, cash flow should remain high thanks to high margins captured in 2022 for 2023 deliveries,” TotalEnergies said.
The company’s integrated LNG adjusted net income reached about $2.07 billion in the first quarter, a drop of 25 percent when compared to the first quarter in 2022 and down by 10 percent when compared to the previous quarter.
The results of its integrated LNG business were impacted by the lower demand in Europe and lower prices.
Also, the French firm said on Tuesday that it expects its oil and gas production will reach about 2.5 million barrels of oil equivalent per day in the second quarter, down by about 50,000 boed from the previous quarter due to planned maintenance in North Sea facilities.
TotalEnergies plans to release its results for the second quarter on July 27.