TotalEnergies posted adjusted net income of $6.5 billion in the first quarter of 2023, compared with $9.0 billion in the same period a year earlier, according to the company’s quarterly report released Thursday.

The company’s hydrocarbon production was 2.52 million barrels of oil equivalent in the first quarter of 2023, compared to 2.84 million barrels of oil equivalent in the first quarter of 2022.

For the second quarter of 2023, the company expects production of approximately 2.5 million barrels of oil equivalent per day. In addition, the company maintains its guidance of net investments of 16 to 18 billion dollars in 2024, including 5 billion in low carbon energies.

Get rid of the tar sands

According to a separate announcement, TotalEnergies has decided to sell its high-carbon Canadian oil sands business to Suncor Energy for up to C$6.1 billion instead of spinning it off. Under the agreement, TotalEnergies will receive C$5.5 billion in cash for the business, plus up to an additional C$600 million subject to certain conditions.

Considering the future proceeds of the sale, the Board of Directors of TotalEnergies has decided to allocate at least 40% of the cash flows generated by TotalEnergies in 2024 to its shareholders. This will be at the high end of the 35-40% range announced in 2022, either through share buybacks or additional dividends. The Board of Directors will decide after the completion of the transaction, expected by the end of the third quarter of 2023, after consultation with the shareholders.

(direct TDN)