FX.co ★ TotalEnergies Q1 Profit Up, Tops Market, Sales Down; Plans First Interim Dividend, $2 Bln Buyback

TotalEnergies SE, a French multinational integrated oil and gas company, reported a 3% increase in its group share net income for the first quarter, amounting to $5.72 billion, up from $5.56 billion in the previous year. The earnings per share also witnessed an increase, reaching $2.40 from last year's $2.21.

The group's adjusted net income was $5.1 billion, or $2.14 per share, compared to last year's $6.5 billion or $2.61 per share, falling slightly short of expectations. Analysts had projected an earnings report of $2.06 per share on average, typically excluding special items.

When translated into euro terms, the adjusted earnings per share were 1.97 euros, a decline from 2.43 euros in the preceding year. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also dropped by 19 percent, down to $11.49 billion from last year's $14.17 billion.

The company's revenue for the quarter also dropped, falling to $56.28 billion from $62.60 billion in the last year. Sales revenue was calculated at $51.88 billion, marking an 11% decline from the previous year's $58.31 billion.

However, TotalEnergies plans to distribute a first interim dividend of 0.79 euro per share for the fiscal year 2024, marking an increase of 6.8 percent compared to 2023. The company's Board of Directors also approved a share buyback plan worth $2 billion in the second quarter of 2024, in line with TotalEnergies’ ambitious objectives for 2024.

In the next quarter, the production of hydrocarbons is projected to range between 2.4 and 2.45 million of barrels of oil equivalent per day (Mboe/d), influenced by planned maintenance and partially offset by the ramp-up of Mero 2 in Brazil and Tyra in Denmark.

For the fiscal year 2024, the company confirmed its net investment guidance to be between $17 billion and $18 billion, with $5 billion earmarked for Integrated Power.