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TotalEnergies, the French oil and gas major, has reported a 15% decrease in its fourth-quarter earnings, concluding a year characterized by low oil prices and subdued fuel demand.
Adjusted net income for the final quarter of 2024 stood at $4.4 billion, down from $5.2 billion in the same period the previous year, yet slightly higher than the third quarter’s $4.1 billion.
This performance exceeded analysts’ expectations, who had forecasted $4.2 billion, according to a Visible Alpha consensus of six analysts.
The decline in earnings was primarily attributed to a significant reduction in refining margins, which halved to $25.90 per metric ton in the fourth quarter from $50.10 in late 2023.
This downturn was influenced by a nearly $10 per barrel drop in crude oil prices and increased competition from new refineries in Africa and Asia, leading to compressed profit margins for converting crude oil into refined products.
Despite these challenges, TotalEnergies’ integrated liquefied natural gas (LNG) division demonstrated resilience, with earnings increasing by 35% to $1.4 billion, driven by market volatility and higher trading profits.
Looking ahead, the company anticipates higher gas prices, increased upstream production, and enhanced power sales in early 2025.
In a move to return value to shareholders, TotalEnergies announced a 7% increase in its 2024 dividend to €3.22 per share and confirmed share buybacks of $2 billion per quarter for 2025.
Boluwatife Enome
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