TotalEnergies: Second Quarter 2024: Main Indicators
TotalEnergies has released its main indicators and estimated financial information for the second quarter of 2024. Key points include:
- Brent crude price averaged $85.0/b, up from $83.2/b in Q1 2024
- Average liquids price rose to $81.0/b from $78.9/b in Q1
- European Refining Margin Marker decreased to $44.9/t from $71.7/t in Q1
- Hydrocarbon production expected to be close to 2.45 Mboe/d, at the high end of guidance
- Integrated Power results projected around $500 million
- Downstream results impacted by lower refining margins, offset partially by higher utilization and marketing results
The company also provided 2024 sensitivities to factors like oil prices and exchange rates.
- Brent crude price increased to $85.0/b from $83.2/b in Q1 2024
- Average liquids price rose to $81.0/b from $78.9/b in Q1 2024
- Hydrocarbon production expected to reach high end of guidance at 2.45 Mboe/d
- Integrated Power results projected around $500 million
- Higher refinery utilization and increased marketing results in Downstream segment
- European Refining Margin Marker decreased to $44.9/t from $71.7/t in Q1 2024
- Slight decrease in realized LNG prices
- Decrease in gas realizations for Exploration & Production segment
Insights
TotalEnergies has demonstrated a generally stable performance with minor fluctuations in key indicators that investors should note. The Brent crude price has modestly increased from
One notable point is the European Refining Margin Marker (ERM), which has dropped significantly from
Investors should also pay attention to the projected cash flow which aligns with the
In summary, while there are some areas of concern such as the declining ERM and gas prices, the overall stability in production and cash flow projections provides a balanced outlook for investors. Understanding these nuances can help retail investors make more informed decisions regarding their investments in TotalEnergies.
From a market perspective, TotalEnergies appears to be navigating a complex landscape with some finesse. The company’s high-end production guidance of 2.45 Mboe/d reflects operational efficiency and robust resource management. This should appeal to investors looking for consistency in production metrics.
However, the decrease in gas realizations and the slight decline in Integrated LNG realized prices suggest a potential softening in the global gas market. Yet, this is mitigated by stable oil prices and high refinery utilization, indicating an adaptive strategy in other segments to balance overall performance.
Looking at the downstream sector, the decrease in refining margins could be seen as a drawback. Yet, an increase in marketing results shows that TotalEnergies is effectively leveraging its market presence and customer base to enhance profitability. This dual strategy of volume optimization and market penetration might position the company well in the competitive energy market.
For retail investors, the key takeaway is the firm's ability to adapt and balance its operations across various market conditions. This adaptability could be a sign of resilience, offering a buffer against market volatility and ensuring sustained performance.
The main indicators, estimated financial information and key elements impacting TotalEnergies’ (Paris:TTE) (LSE:TTE) (NYSE:TTE) second quarter 2024 aggregates are shown below:
Main indicators |
|
|
|
|
|
|
|
|
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
€/$ |
|
1.08 |
1.09 |
1.08 |
1.09 |
1.09 |
Brent |
($/b) |
85.0 |
83.2 |
84.3 |
86.7 |
78.1 |
Average liquids price * (1) |
($/b) |
81.0 |
78.9 |
80.2 |
78.9 |
72.0 |
Average gas price * (1) |
($/Mbtu) |
5.05 |
5.11 |
6.17 |
5.47 |
5.98 |
Average LNG price ** (1) |
($/Mbtu) |
9.32 |
9.58 |
10.28 |
9.56 |
9.84 |
European Refining Margin Marker (ERM) *** |
($/t) |
44.9 |
71.7 |
52.6 |
100.6 |
40.1 |
* Sales in $ / Sales in volume for consolidated affiliates.
** Sales in $ / Sales in volume for consolidated and equity affiliates.
*** This market indicator for European refining, calculated based on public market prices ($/t), uses a basket of crudes, petroleum product yields and variable costs representative of the European refining system of TotalEnergies.
(1) Does not include oil, gas and LNG trading activities, respectively.
Main elements impacting the quarter aggregates
- Hydrocarbon production is expected to be within the high end of the guidance range, close to 2.45 Mboe/d. Exploration & Production results are expected to reflect this production level and the positive evolution of the oil price environment, partially offset by a decrease in gas realizations.
- In a context of low volatility in the markets, Integrated LNG results are expected to be broadly in line with first quarter, while reflecting a slight decrease in realized prices.
-
Given seasonality, Integrated Power results are expected to be around
$500 million $2.5 $3 billion -
Downstream results will reflect the decrease in refining margins in
Europe and in theMiddle East , but will be partially compensated by a higher utilization of refineries and an increase in marketing results.
2024 Sensitivities* |
|
|
|
|
||
|
Change |
Estimated impact on adjusted net operating income |
Estimated impact on cash flow from operations |
|||
Dollar |
+/- 0.1 $ per € |
-/+ 0.1 B$ |
~0 B$ |
|||
Average liquids price ** |
+/- 10 $/b |
+/- 2.3 B$ |
+/- 2.8 B$ |
|||
European gas price – NBP / TTF |
+/- 2 $/Mbtu |
+/- 0.4 B$ |
+/- 0.4 B$ |
|||
European Refining Margin Marker (ERM) |
+/- 10 $/t |
+/- 0.4 B$ |
+/- 0.5 B$ |
|||
* Sensitivities are revised once per year upon publication of the previous year’s fourth quarter results. Sensitivities are estimates based on assumptions about TotalEnergies’ portfolio in 2024. Actual results could vary significantly from estimates based on the application of these sensitivities. The impact of the $-€ sensitivity on adjusted net operating income is essentially attributable to Refining & Chemicals.
** In an 80 $/b Brent environment.
Disclaimer
Unless otherwise stated, the terms “TotalEnergies”, “TotalEnergies company” and “Company” in this document are used to designate TotalEnergies SE and the consolidated entities directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate and independent legal entities.
The data presented in this document is based on TotalEnergies’ internal preliminary reporting and is not audited. This data is not intended to be a comprehensive summary of all items that will affect TotalEnergies SE’s results or to provide an estimate of 2024 quarterly results. Actual results may vary. To the extent permitted by law, TotalEnergies SE disclaims all liability from the use of this data.
This document may contain forward-looking statements (including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995), notably with respect to the financial condition, results of operations, business activities and strategy of TotalEnergies. This document may also contain statements regarding the perspectives, objectives, areas of improvement and goals of TotalEnergies, including with respect to climate change and carbon neutrality (net zero emissions). An ambition expresses an outcome desired by TotalEnergies, it being specified that the means to be deployed do not depend solely on TotalEnergies. These forward-looking statements may generally be identified by the use of the future or conditional tense or forward-looking words such as “will”, “should”, “could”, “would”, “may”, “likely”, “might”, “envisions”, “intends”, “anticipates”, “believes”, “considers”, “plans”, “expects”, “thinks”, “targets”, “aims” or similar terminology. Such forward-looking statements included in this document are based on economic data, estimates and assumptions prepared in a given economic, competitive and regulatory environment and considered to be reasonable by TotalEnergies as of the date of this document.
These forward-looking statements are not historical data and should not be interpreted as assurances that the perspectives, objectives or goals announced will be achieved. They may prove to be inaccurate in the future, and may evolve or be modified with a significant difference between the actual results and those initially estimated, due to the uncertainties notably related to the economic, financial, competitive and regulatory environment, or due to the occurrence of risk factors, such as, notably, the price fluctuations in crude oil and natural gas, the evolution of the demand and price of petroleum products, the changes in production results and reserves estimates, the ability to achieve cost reductions and operating efficiencies without unduly disrupting business operations, changes in laws and regulations including those related to the environment and climate, currency fluctuations, technological innovations, meteorological conditions and events, as well as socio-demographic, economic and political developments, changes in market conditions, loss of market share and changes in consumer preferences, or pandemics such as the COVID-19 pandemic. Additionally, certain financial information is based on estimates particularly in the assessment of the recoverable value of assets and potential impairments of assets relating thereto.
Readers are cautioned not to consider forward-looking statements as accurate, but as an expression of the Company’s views only as of the date this document is published. TotalEnergies SE and its subsidiaries have no obligation, make no commitment and expressly disclaim any responsibility to investors or any stakeholder to update or revise, particularly as a result of new information or future events, any forward-looking information or statement, objectives or trends contained in this document. In addition, the Company has not verified, and is under no obligation to verify any third-party data contained in this document or used in the estimates and assumptions or, more generally, forward-looking statements published in this document.
The information on risk factors that could have a significant adverse effect on TotalEnergies’ business, financial condition, including its operating income and cash flow, reputation, outlook or the value of financial instruments issued by TotalEnergies is provided in the most recent version of the Universal Registration Document which is filed by TotalEnergies SE with the French Autorité des Marchés Financiers and the annual report on Form 20-F filed with the United States Securities and Exchange Commission (“SEC”).
Additionally, the developments of environmental and climate change-related issues in this document are based on various frameworks and the interests of various stakeholders which are subject to evolve independently of our will. Moreover, our disclosures on such issues, including climate-related disclosures, may include information that is not necessarily "material" under US securities laws for SEC reporting purposes or under applicable securities law.
Financial information by business segment is reported in accordance with the internal reporting system and shows internal segment information that is used to manage and measure the performance of TotalEnergies. In addition to IFRS measures, certain alternative performance indicators are presented, such as performance indicators excluding certain adjustment items described below (adjusted operating income, adjusted net operating income, adjusted net income), return on equity (ROE), return on average capital employed (ROACE), gearing ratio, operating cash flow before working capital changes, the shareholder rate of return. These indicators are meant to facilitate the analysis of the financial performance of TotalEnergies and the comparison of income between periods. They allow investors to track the measures used internally to manage and measure the performance of TotalEnergies. The adjusted results (adjusted operating income, adjusted net operating income, adjusted net income) are defined as replacement cost results, adjusted for special items, excluding the effect of changes in fair value. For further details on the adjustment items, please refer to the last published earnings statement and notes to the consolidated financial statements.
Euro amounts presented for the fully adjusted-diluted earnings per share represent dollar amounts converted at the average euro-dollar (€-$) exchange rate for the applicable period and are not the result of financial statements prepared in euros.
Cautionary Note to US Investors – The SEC permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with SEC rules. We may use certain terms in this document, such as “potential reserves” or “resources”, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. US investors are urged to consider closely the disclosure in the Form 20-F of TotalEnergies SE, File N° 1-10888, available from us at 2, place Jean Millier – Arche Nord Coupole/Regnault – 92078 Paris-La Défense Cedex,
View source version on businesswire.com: https://www.businesswire.com/news/home/20240715041536/en/
TotalEnergies
Source: TOTALENERGIES SE
FAQ
What was TotalEnergies' (TTE) average Brent crude price in Q2 2024?
How did TotalEnergies' (TTE) European Refining Margin Marker change in Q2 2024?
What is TotalEnergies' (TTE) expected hydrocarbon production for Q2 2024?
What are the projected Integrated Power results for TotalEnergies (TTE) in Q2 2024?
