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(Sharecast News) - French energy major TotalEnergies reported a slide in quarterly income on Friday, after gas prices softened.
Adjusted earnings before interest, tax, depreciation and amortisation fell 19% at $11.5bn, while adjusted net income fell 22% in the three months to March end, to $5.1bn.
That was, however, better than the $5bn expected by analysts, after resilient oil trading helped offset the weaker gas market.
Integrated liquified natural gas (LNG) posted a 41% slump in adjusted net operating income, to $1.2bn, but exploration and production posted a far smaller 4% decline, to $2.6bn,
Patrick Pouyanne, chief executive, said the first quarter had seen "sustained oil prices and refining margins but softening gas prices".
He continued: "TotalEnergies demonstrates once again this quarter the relevance of its balance transition strategy that is anchored on two pillars, hydrocarbons and power, delivering strong results and an attractive shareholder return."
Looking ahead to the current quarter, TotalEnergies noted that Brent prices were "strong", supported by geopolitical tensions and the decision by Opec+ to maintain production quotas.
European gas prices, meanwhile, were trading within a range of $8 and $10/mbtu at the beginning of the second quarter.
"Given the evolution of oil and gas prices in recent months, and the lag effect on price formulas, TotalEnergies anticipates that its average LNG selling price should between $9 and $10/mbtu," it added.
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