Analysis & Outlook
“Thanks to year-on-year production growth of nearly 4% for oil & gas and 18% for electricity, TotalEnergies posted solid results in first-quarter 2025 and maintained attractive shareholder returns despite an uncertain environment.”
In a price environment globally similar to fourth-quarter 2024, TotalEnergies delivered strong results in first-quarter 2025 that are in line with the positive results of fourth-quarter 2024, reporting $4.2 billion in adjusted net income and $7.0 billion in CFFO.
What are the results and outlook for the Exploration-Production segment (oil, gas) and the Integrated LNG sector?
Jean-Pierre Sbraire / Exploration and Production generated adjusted net operating income of $2.5 billion and cash flow of $4.3 billion in the first quarter, up 6% and 9% quarter-on-quarter, respectively. Cash flow benefited from the accretive effect of new oil production that is both low-cost and low-emission.
Integrated LNG achieved adjusted net operating income of $1.3 billion and cash flow of $1.2 billion for the quarter, driven by LNG prices that were higher year-on-year but lower than fourth-quarter 2024. LNG trading results were in line with expectations for 2025, while gas trading was affected by the unexpected downturn of European markets following heightened uncertainties on the evolution of the Russian-Ukrainian conflict.
In the Oil & Gas business, first-quarter production was above 2.55 Mboe/d, up 4% year-on-year, notably benefiting from the continued ramp up of projects in Brazil, the United States, Malaysia, Argentina and Denmark.
The start-ups of the Ballymore offshore field in the United States and Mero-4 in Brazil continue to add high-margin barrels and further reinforce the Company’s 2025 hydrocarbon production objective of more than 3%.
And for the Integrated Power sector and Downstream activities?
J-P. S. / Integrated Power generated adjusted net operating income of more than $500 million and cash flow of $600 million, in line with the Company’s annual guidance. TotalEnergies continued to deploy its differentiated Integrated Power model in Germany with the closing of the acquisition of the renewable energy producer VSB in the beginning of April and the launch of battery storage projects developed by Kyon.
Against a backdrop of weak refining margins and declining petrochemical and biofuel margins in Europe, Downstream posted adjusted net operating income of $0.5 billion and cash flow of $1.1 billion, below expectations due to operational performance at Donges and Port Arthur.
What is the plan in terms of shareholder returns?
J-P. S. / Confident in the Company’s ability to reach its 2025 underlying growth objective, and taking into account the strength of its balance sheet (normalized gearing(1) of 11% excluding the seasonal effect of working capital), the Board of Directors has confirmed the distribution of the first interim dividend of €0.85/share for fiscal year 2025, an increase of 7.6% compared with 2024. Furthermore, it has also decided to continue share buybacks for up to $2 billion in the second quarter, despite a softening price environment, with Brent below $70/b since the beginning of April, and an uncertain geopolitical and macroeconomic environment.
(1) Normalized gearing: indicator defined as the gearing excluding the impact of seasonal variations, notably on working capital.