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 of this year.
TotalEnergies said on Tuesday the average LNG price was $9.32/MMBtu in the April-June period, down by 2.7 percent compared to $9.58/MMBtu in the previous quarter.
The average price decreased compared to $9.84/MMBtu in the second quarter of 2023, while the company’s average price was $9.56/MMBtu in the third quarter last year and $10.28/MMBtu in the fourth quarter.
TotalEnergies said in its Q1 results report that its average LNG selling price should be between $9 and $10/MMbtu in the second quarter 2024 of this year given the evolution of oil and gas prices in recent months and the lag effect on price formulas.
The company’s integrated LNG adjusted net income reached about $1.22 billion in the first quarter, a drop of 41 percent compared to the first quarter in 2023.
Also, TotalEnergies sold 10.7 million tonnes of LNG in the first quarter, down 3 percent compared to 11 million tonnes in the same period last year, and down 9 percent compared to 11.8 million tonnes in the prior quarter.
Integrated LNG results to be “broadly in line” with first quarter
“In a context of low volatility in the markets, integrated LNG results are expected to be broadly in line with first quarter, while reflecting a slight decrease in realized prices,” TotalEnergies said on Tuesday.
Moreover, the French firm said it expects its oil and gas production to be “within the high end of the guidance range, close to 2.45 Mboe/d”.
“Exploration and production results are expected to reflect this production level and the positive evolution of the oil price environment, partially offset by a decrease in gas realizations,” TotalEnergies said.
TotalEnergies plans to release its results for the second quarter on July 25.