TotalEnergies saw its first-quarter adjusted net income drop by 22 per cent from a year ago, but the French supermajor’s adjusted earnings beat the consensus estimate.
Stable oil prices and healthy refining margins failed to fully offset a decline in natural gas prices, but helped TotalEnergies beat analyst forecasts as it reported the first quarter (Q1) earnings at the weekend. The company announced additional share buybacks and an increase in the first interim dividend for 2024.
TotalEnergies posted an adjusted net income of $5.1 billion for the first quarter of 2024, down by 22 per cent compared to $6.5 billion for the same period of 2023. Still, the past quarter’s adjusted earnings beat the $5 billion consensus estimate of analysts’ forecasts compiled by LSEG and $4.88 billion expected in an Visible Alpha consensus.
“In a context of sustained oil prices and refining margins but softening gas prices, the Company announced first quarter 2024 adjusted net income of $5.1 billion and cash flow of $8.2 billion, in line with its ambitious 2024 objectives,” TotalEnergies’ chief executive officer, Patrick Pouyanné said in a statement.
Oil and gas production averaged 2.46 million barrels of oil equivalent per day (boe/d), benefiting from six per cent quarter-to-quarter production growth in LNG and from start-ups at Mero 2 in Brazil and Akpo West in Nigeria. The output, however, is expected to slightly drop in the second quarter to between 2.4 million boe/d and 2.45 million boe/d, due to planned maintenance that will be partially offset by ramp-ups of Mero 2 in Brazil and Tyra in Denmark.
TotalEnergies’ Board of Directors decided to pay a first interim dividend of 0.79 euros or $0.85 per share for 2024, up by nearly seven per cent compared to 2023, and authorised the company to buy back shares for $2 billion in the second quarter of 2024.
During the earnings call, Pouyanné said that TotalEnergies is “seriously” looking at a primary listing in New York, due to a friendlier investor base.
“U.S. shareholders are buying, European shareholders are not so buying, so we must think of it,” Pouyanné said. The executive expects to report to the board on the issue by September.
Another European major, Shell, has also recently hinted at ditching London for the NYSE, as it believes its stock is undervalued on the London Stock Exchange.
Credit: thenationonlineng.net
