Natural Gas Daily: October 29th, 2020

SHELL BACK IN BLACK IN Q3 (UPDATE)

Shell reported net income of $489mn in the third quarter, marking a reversal from a $18.1bn loss in the previous three months but far less than the $5.88bn it generated in Q3 2019. But CEO Ben van Beurden told a press briefing that the company's quarter-on-quarter growth reflected the strength of the company's assets.

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• Shell slashed its dividends in April for the first time since the Second World War, by around two thirds. 

• Since announcing restructuring and cuts in spending in order to increase investment in renewables and cleaner energy, its share price plummeted to 885p in early October, a 25-year low. At the start of the year it was 2300p.

NORWEGIAN EQUINOR'S Q3 LOSS TOPS $2BN

Norwegian state producer Equinor reported a third-quarter net operating loss of $2.02bn, four times the loss in Q3 2019; and a net loss of $2.12bn – almost double the loss in Q3 2019 – following net impairments of $2.93bn. Of that, almost half – $1.38bn – came from the US.

• The quarter ended with the fire at a turbine in the Hammerfest LNG plant, which led to a police investigation into the causes early October, aided by the petroleum safety authority.

ENI SWINGS TO Q3 LOSS ON WEAK DEMAND

Italy's Eni swung to a €0.15bn adjusted net loss in the third quarter, from a €0.78bn profit a year earlier, the company reported on October 28, blaming the reversal on weak demand. The major said it was well-positioned to weather the downturn, however, pointing to its €17.4bn in liquidity at the end of September. 

• Eni announced in June it would separate its renewable energy activities from its oil and gas operations under a new division called Energy Evolution, in order to put the company on "an irreversible path" towards decarbonisation.

   

SINOPEC'S PROFIT DROPS 45% IN 9M

Chinese state-run Sinopec on October 28 reported a 45% yr/yr drop in net profit for the nine months ending September 30 (9M), blaming the decline on lower oil and gas prices.

• Despite incurring losses in the first two quarters of the year, Sinopec has reported a net profit during 9M thanks to a fourfold yr/yr increase in income in Q3. This growth was thanks to proceeds from the spin-off of its pipeline assets.  

CONOCOPHILLIPS PIVOTS TO Q3 LOSS

US major ConocoPhillips said it had net loss of $500mn in Q3 2020, a sharp reversal from earnings of $3.1bn in the same period a year ago.

• Fellow US-based Ovintiv (formerly Canada’s Encana) reported October 28 a Q3 2020 net loss of $1.52bn against year-ago earnings of $149mn. It attributed most of the loss – a feature common to almost all producers this year – to a non-cash ceiling test impairment on the value of its reserves. 

CANADA’S TC ENERGY ‘ROBUST’ IN Q3

Canadian infrastructure company TC Energy (formerly TransCanada) said it had a “robust” financial performance in Q3 2020, with net income attributable to common shares 22% higher than in the same period a year ago.

• Through the first nine months this year, TC Energy has continued to advance its C$37bn secured capital program, and has placed about C$3.1bn of assets into service, including C$3bn on its Nova Gas Transmission Limited (NGTL) system in western Canada and C$100mn on its Canadian Mainline system.