Published by Todd Bush on November 2, 2024
LONDON, Oct 31 - Higher production and sales in Asia helped Shell's (SHEL.L), opens new tab liquefied natural gas (LNG) business outshine TotalEnergies' (TTEF.PA), opens new tab in the third quarter, analysts and traders said, even as group profits at both were hit by a slump in oil refining.
Shell reported quarterly profits of $6 billion, beating forecasts by 12%, while TotalEnergies' $4.1 billion profit slightly missed expectations. Both results were affected by 70% and 82% drops in profits from their oil refining and chemicals businesses, respectively, with the different performance of their LNG divisions standing out.
Shell's third-quarter LNG sales rose 6.4% from a year earlier. TotalEnergies' LNG sales fell 9.5% over the same period, partly due to an unplanned outage at its Ichthys LNG plant in western Australia.
The two companies are betting on growing demand for LNG in the coming decades and have invested heavily in new production and supply deals in the Gulf, the United States, Australia and elsewhere.
Shell is the world's top LNG trader, accounting for nearly one in five cargoes traded last year. TotalEnergies, the third largest trader, had a market share of around 11% in 2023. Their trading divisions often contribute billions in annual profits.
The rivals differ in scale in different markets, particularly in fast-growing Asian economies, where Shell has a bigger presence, according to Jefferies analyst Giacomo Romeo. TotalEnergies is more heavily focused on Europe, he added.
Demand for natural gas surged in Asia over the summer due to increasing demand from air conditioning, pushing benchmark Asian prices to trade at a premium to European prices from mid-June to the end of August.
"Total is less exposed to the LNG market East of Suez than Shell and benefited less from strong Asian demand for LNG for cooling during the summer," Romeo said.
Total is hoping to change that. This year it signed six long-term LNG supply contracts through the 2030s with buyers in China, Singapore, India, South Korea and Turkey totalling 4.65 million metric tons, according to Reuters calculations.
Shell Chief Financial Officer Sinead Gorman told reporters that the LNG division benefited from "very good operational performance" and the sale of several LNG cargoes that were scheduled for delivery in the fourth quarter.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue ๐ฌ๏ธ Return and Verified Announce First 100% Wind-Powered Direct Air Capture Hub, Designed To Scale to 500,000 Tons Annually ๐ The Importance of Responsible Carbon Removal: Insight...
Inside This Issue ๐ฐ OnStream Receives $26 Million in Federal Funding for Louisiana Offshore Carbon Storage Hub Development and Announces Joint Venture Partnership with Major Midstream Company ๐ Ex...
Inside This Issue ๐ EDF Group and Abraxas Power Corp. Announce Strategic Partnership for the Exploits Valley Renewable Energy Corporation Green Hydrogen and Ammonia Project in Newfoundland ๐ง Hydro...
FLAGSHIPS Wins Prestigious Award at EU Hydrogen Week
The FLAGSHIPS project takes home the Best Outreach Award at EU Hydrogen Week, celebrating its pioneering role in zero-emission waterborne transport and hydrogen innovation. At the EU Hydrogen Week...
Haffner Energy Launches Its Hydrogen Production, Testing and Training Center in Champagne, France
Vitry-le-Franรงois, France โ November 22, 2024, 08:00 am CEST Inaugurated today, Haffner Energy's hydrogen production, testing, and training center is about to start producing renewable hydrogen us...
Sara Nawaz and the Institute for Responsible Carbon Removal are paving the way in a crucial sector: addressing climate change through sustainable and equitable carbon removal practices. With growi...
'Project Concho' Combines Proven DAC Technology, New Local Wind Power And Texas' Carbon Storage Capacity SAN ANGELO, Texas, Nov. 21, 2024 /PRNewswire/-- Carbon capture and removal project develope...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.