PARIS (Reuters) – TotalEnergies published declining results on Friday for the first quarter of 2024, marked by the drop in gas prices, while confirming the level of its share buybacks.

The oil and gas group, which is developing at a sustained pace in renewable energies, also estimated in a press release that high oil prices were “likely to impact refining margins”, which were established at high levels. since the beginning of the year.

After a 43% fall in its average gas sales price in the first quarter, to $5.11 per million British thermal units (Mbtu), TotalEnergies stressed that European gas prices were currently remaining between 8 and 10 dollars/Mbtu.

The recovery in demand for liquefied natural gas (LNG) in Asia and the small increase in production capacity expected in 2024 are supporting gas prices on the futures markets at more than 11 dollars/Mbtu for next winter, also argues the group.

TotalEnergies recorded over the January-March period an adjusted net profit of 5.1 billion dollars (-22%), an adjusted Ebitda of 11.5 billion (-19%) and a production of 2.461 million barrels per day ( -2%).

According to LSEG data, analysts on average expected adjusted net income of $5.0 billion.

The group is proposing an interim dividend of 0.79 euros per share (+6.8%) and indicates having authorized a share buyback program of $2 billion in the second quarter, as in the first.

It confirmed its forecast of net investments of 17 to 18 billion dollars this year – including 5 billion dedicated to its electricity activities.

On the Paris Stock Exchange, TotalEnergies shares rose 0.25% to 68.23 euros at 10:20 a.m. while the CAC 40 advanced 0.37%.

TOWARDS A LISTING IN NEW YORK?

According to comments reported by Bloomberg, the CEO of the French group, Patrick Pouyanné, also declared in an interview that a change in the main listing of TotalEnergies from Paris to New York was “a legitimate question”, while indicating that the company’s headquarters would remain based in Paris.

“We are facing a situation where European shareholders are selling or maintaining their stake and US shareholders are buying (…). What is best for US shareholders? Do they prefer the shares to be primarily listed in New York or in Europe? I think when you ask the question, you have the answer,” he said.

A TotalEnergies spokesperson declined to comment on these statements.

The group also announced its decision not to include on the agenda of its general meeting of May 24 a proposed resolution, tabled by a group of shareholders representing less than 0.9% of the capital, aimed at obtaining a dissociation of the chairmanship of the board of directors and the general management of the company.

“The unity of the power of direction and representation of the company is part of a context of balance of powers particularly well supervised by the governance of the company (…)”, argued TotalEnergies in particular, recalling that It was up to its board to choose between a unified or dissociated mode of the functions of president and general director.

(Reporting by Benjamin Mallet and America Hernandez; editing by Blandine Hénault and Kate Entringer)

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