PARIS (Reuters) – TotalEnergies on Thursday reported lower results for the second quarter of 2024, marked by lower gas prices and refining margins, while maintaining the level of its share buybacks.
The oil and gas group, which is also very active in renewable energies, stressed in a press release that refining margins, which have been in sharp decline since the end of the first quarter, were penalized by weak demand for diesel in Europe as well as by “the normalization of the impacts on the markets of disruptions to Russian supplies.”
TotalEnergies said that, given the drop in summer demand in Europe, European gas prices were expected to be between $8 and $10 per million British thermal units (MMbtu) in the third quarter.
At the same time, “in a context of tension over supply capacities”, liquefied natural gas (LNG) prices are set at more than $12/Mbtu in Asia, supported by the increase in demand, particularly in China and India.
Refining margins have returned to normal after “exceptional years,” TotalEnergies CEO Patrick Pouyanné said at a conference with analysts.
“Our refiners need to come back to reality and produce good results with lower margins,” he added.
Patrick Pouyanné also stated that TotalEnergies, after an agreement to strengthen its position in natural gas production in Texas through the purchase of a 20% stake held by Lewis Energy Group in operating permits, was preparing a new operation downstream in order to fuel its ambitions in LNG.
The group recorded an adjusted net profit of 4.7 billion dollars (-6%), an adjusted EBITDA of 11.1 billion (stable) and a production of 2.441 million barrels per day (-1%) for the April-June period.
According to LSEG data, analysts on average expected adjusted net income of $4.96 billion.
Biraj Borkhataria, head of energy transition research at RBC Europe Limited, described TotalEnergies’ results as “slightly disappointing.”
The group is proposing an interim dividend of 0.79 euros per share (+6.8%) and indicates that it has authorized up to two billion dollars of share buybacks in the third quarter of 2024.
It confirmed its forecast of net investments of $17 billion to $18 billion this year – including $5 billion dedicated to its electricity activities.
On the Paris Stock Exchange, TotalEnergies shares fell by 1.14% at around 4:45 p.m.
(Reporting by Benjamin Mallet, with America Hernandez; edited by Blandine Hénault and Kate Entringer)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
