TotalEnergies Posts $5.7B Q1 Profit, Exceeding Estimates
TotalEnergies SE has disclosed its financial results for the first quarter of 2024, revealing an adjusted net income of $5.1 billion, a decrease from the $6.54 billion reported in the same quarter of the previous year. This decline is attributed to a combination of factors, including Europe's weaker gas market and a mild winter that led to reduced demand. Despite the drop, the company's performance has surpassed analyst expectations, which had anticipated an adjusted net income of $5 billion. The firm's EBITDA for the quarter stood at $11.5 billion, also marking a decrease from the $14.2 billion reported in Q1 of the previous year.
TotalEnergies has responded to these market conditions with strategic initiatives, including an interim dividend increase of nearly 7% to 0.79 €/share for 2024, and a share buyback program worth $2 billion set for the second quarter. These shareholder returns come as the company prepares to celebrate its centennial anniversary.
Looking ahead, TotalEnergies anticipates an average LNG selling price between $9 and $10/Mbtu for the second quarter of 2024, reflecting the evolving oil and gas price environment. Production is expected to benefit from new projects in Brazil and Denmark, with hydrocarbon production projected to reach up to 2.45 Mboe/d and refining utilization rates anticipated to exceed 85%. The company confirms investment plans of $17-$18 billion for the year, with $5 billion allocated to Integrated Power, underscoring its balanced strategy between hydrocarbons and power generation.