TotalEnergies: share price falls as refining margin disappoints
July 16, 2024 at 10:04 am
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TotalEnergies suffered one of the biggest declines in the CAC 40 index on the Paris Bourse on Tuesday, after reporting a lower-than-expected refining margin for the second quarter.
The French energy group posted a European refining margin (ERM) of $44.9 per tonne for the quarter, after $71.7 for the first three months of the year.
In a reaction note, analysts at RBC point out that this ERM margin is well below their forecast of $55 per tonne.
As a result, the Canadian brokerage expects market estimates for the second quarter to be revised by 10% to 15%, and lowers its target for quarterly net earnings from $5.25 billion to $4.86 billion.
At around 3:45 pm, TotalEnergies shares were down by more than 1.8%, compared with a decline of 1.1% for the STOXX Europe 600 Oil & Gas sector index.
This publication confirms the difficulties currently experienced by the sector, following the cautious messages already delivered by Shell, ExxonMobil and bp, which point to a difficult earnings season.
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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%).
TOTALENERGIES SE 
