TotalEnergies’ third quarter adjusted net income stood at $9.86 billion. That compared to $4.77 billion for the same period in 2021, and $9.8 billion in the second quarter of this year.
The company also announced a new impairment of $3.1 billion which it said was related to Russia, adding to $7.6 billion of provisions in the first two quarters of the year.
Oil and gas prices have risen this year in the wake of Russia’s invasion of Ukraine, and Shell (LON:RDSa) on Thursday also reported a third-quarter profit of $9.45 billion and announced plans to sharply boost its dividend by year end.
Unlike London-based rivals BP (NYSE:BP) and Shell, TotalEnergies has held on to several investments in Russia, including minority stakes in Russia’s Novatek, Yamal LNG and Arctic LNG 2.
Asked about the reason for the provision, a TotalEnergies spokesman referred to comments made by the company’s chairman and chief executive, Patrick Pouyanne, at an investor presentation last month, when he said it becoming “complex” for Western groups to receive dividends from Russian joint-ventures and stake holdings.
“I’m not convinced we will continue to have any flows from Russia in the months to come,” Pouyanne said back then.
At that presentation in late September, TotalEnergies said it would increase investments and ramp up production of liquefied natural gas (LNG) as it laid out its strategy for a possible future without Russia – while still stopping short of severing its Russian links.
TotalEnergies, which has faced strike action by some refinery workers in France, also announced on Thursday a one-off salary bonus to staff to reflect its bumper profits.