TotalEnergies: earnings down, but better than expected
April 26, 2024 at 03:45 am
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On Friday, TotalEnergies reported a 22% decline in first-quarter adjusted net income, while citing a "solid" performance in line with its targets for the 2024 financial year.
Despite a 3% year-on-year rise in Brent crude oil, the group posted adjusted net income of $5.1 billion for the first three months of the year, compared with $6.5 billion a year earlier.
According to consensus, analysts were on average expecting adjusted net income in the region of $5 billion.
The group's hydrocarbon production reached 2.46 million barrels of oil equivalent per day, down 3% year-on-year.
The energy group said in a statement that its operating cash flow, meanwhile, fell by 58% to $2.2 billion over the past quarter.
At $8.2 billion, its cash flow from operations (CCFO) nevertheless exceeded analysts' average forecast of $8 billion.
The company intends to propose an initial interim dividend of 0.79 euros per share for the 2024 financial year, up almost 7% on 2023.
Despite the downturn in its results, Total also states that it is targeting the equivalent of two billion dollars in share buybacks for the second quarter.
Following this slightly better-than-expected publication, TotalEnergies shares were up 0.2% on Friday morning in early trading on the Paris Bourse.
The share is up 10.5% since the start of the year.
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TotalEnergies SE is one of the leading worldwide oil groups. Net sales break down by activity as follows:
- refining and chemistry (42.7%): refining of petroleum products (operated, at the end of 2023, 16 refineries throughout the world) and manufacture of basic chemistry (olefins, aromatics, polyethylene, fertilizer, etc.) and of specialty chemistry (rubber, resins, adhesives, etc.). The group is also operating in trading and sea transport of crude oil and oil products;
- petroleum products distribution (37.9%): at the end of 2023 operated 14,571 service stations worldwide;
- electricity generation (11.5%): from combined cycle gas plants and renewable energies;
- gas production, trading, transport and distribution (5%): primarily liquefied natural gas (44.3 million tonnes sold in 2023), natural gas, biogas, hydrogen, liquefied petroleum gas, etc.;
- hydrocarbon operating and production (2.8%): 2.5 million barrels of oil equivalent produced per day in 2023;
- other (0.1%).
Net sales are distributed geographically as follows: France (23.4%), Europe (41.2%), North America (9.4%), Africa (9.2%) and other (16.8%).