“TotalEnergies proves resiliency in an oil volatile environment thanks to its integrated multi-energy model.”
In an oil volatile environment, with refining margins sharply down, TotalEnergies is demonstrating the resilience of its integrated multi-energy model, posting adjusted net income of $4.1 billion and CFFO totaling $6.8 billion in the third quarter of 2024.
How do you account for TotalEnergies’ resilience?
Jean-Pierre Sbraire/ It’s primarily being driven by our Exploration & Production segment, which is reporting strong adjusted net operating income of $2.5 billion, down just 7%, plus stable cash flow at $4.3 billion and an attractive return on capital employed of 15.6%. Upstream production stood at 2.41 Mboe/day for the quarter, boosted by the ramp-up in production at the Mero 2 project in Brazil, which has helped to offset production losses at Ichthys LNG and in Libya. TotalEnergies brought the high-margin Anchor oil project on stream in the U.S. during the third quarter, as well as the Fenix natural gas project in Argentina. The Company has also embarked on the GranMorgu project in Suriname, which will help us meet our target annual growth rate of 3% by 2030.
How do things stand in the Company’s other businesses?
J-P. S./ The Integrated LNG business is reporting adjusted net operating income of $1.1 billion and cashflow of $0.9 billion, with gas and LNG trading not fully benefiting from markets characterized by low volatility. TotalEnergies continues to strengthen future cash flows by successfully marketing its LNG volumes through signing several medium-term sales and contracts in Asia during the quarter. Given the very sharp decrease in refining margins in Europe (down 66% quarter-to- quarter) and in the rest of the world, Downstream is posting adjusted net operating income of $0.6 billion and cash flow of $1.2 billion for the quarter, off roughly 40% quarter-to-quarter, with marketing and trading activities compensating for the very sharp decline in refining.
Is Integrated Power contributing to that resilience in the results?
J-P. S./ Absolutely. They have adjusted net operating income of $0.5 billion and cash flow of more than $0.6 billion. Year-to-date cash flow is up 35% compared to 2023, reaching $1.95 billion, in line with our annual guidance of over $2.5 billion. Throughout this quarter TotalEnergies continued to deploy its integrated power business model, in particular with the commissioning of two giant solar power plants with batteries in Texas and the acquisition of a gas-fired power plant in the United Kingdom.
What has the Board of Directors decided regarding the dividend?
J-P. S./ Given these robust results, the Board of Directors has approved the distribution of a third interim dividend for fiscal year 2024 in the amount of €0.79 per share, an increase of close to 7% compared to 2023, and has authorized the Company to execute share buybacks of $2 billion in the fourth quarter of 2024, in line with the objective of reaching $8 billion throughout the year.