TotalEnergies(TTE) - 2024 Q4 - Annual Report

Financial Performance - In 2024, TotalEnergies reported IFRS net income of $15.8 billion and adjusted net income of $18.3 billion, with cash flow from operating activities of $30.9 billion[39]. - Net income attributable to TotalEnergies' shareholders was $15,758 million in 2024, down 26% from $21,384 million in 2023[62]. - Adjusted net income for 2024 was $18,264 million, a decrease of 21% compared to $23,176 million in 2023[63]. - Cash flow from operating activities was $30,854 million in 2024, a decrease of 24% from $40,679 million in 2023[64]. - The consolidated net income for TotalEnergies in 2024 was $16,031 million, a decrease from $21,510 million in 2023[150]. - Adjusted EBITDA for TotalEnergies in 2024 was $43,143 million, down from $50,030 million in 2023[151]. - Total revenues from sales in 2024 were $195,610 million, down from $218,945 million in 2023[152]. Segment Performance - The Exploration & Production segment generated adjusted net operating income of $10 billion, with a reserves replacement ratio of 157% and a proved reserves life index greater than 12 years[40]. - Integrated LNG segment achieved adjusted net operating income of $4.9 billion, with cash flow from operating activities of $5.2 billion, and launched several new projects including Marsa LNG in Oman and Ubeta in Nigeria[41]. - Integrated Power segment cash flow from operating activities was $3.0 billion, with net electricity production increasing 23% year-on-year to 41 TWh, contributing to a 17% reduction in average lifecycle carbon intensity[42]. - Downstream adjusted net operating income was $3.5 billion, down 44% from 2023 due to declining European refining margins, but cash flow from operating activities remained above $6 billion[43]. - Integrated Power adjusted net operating income increased to $2,173 million in 2024, up nearly 20% compared to $1,853 million in 2023[116]. - The adjusted net operating income for the Refining & Chemicals segment in 2024 was $2,160 million, a decrease of 54% from $4,654 million in 2023, attributed to lower refining margins[131]. Production and Sales - TotalEnergies' hydrocarbon production was 2,434 kboe/d in 2024, a decrease of 2% from 2,483 kboe/d in 2023[62]. - TotalEnergies expects more than 40 Mt of LNG sales in 2025, with average LNG selling prices anticipated to be above $10/Mbtu in the first quarter[48]. - For full-year 2024, LNG sales were down 10% compared to 2023, with adjusted net operating income dropping to $4,869 million, down 21% from $6,200 million in 2023[105]. - Total petroleum product sales in the Marketing & Services segment decreased by 2% in 2024 compared to 2023, with adjusted net operating income at $1,360 million, a 7% decline from $1,458 million[142]. Investments and Acquisitions - The company made acquisitions totaling $4,646 million in 2024, including interests in renewable energy and gas fields[64]. - TotalEnergies' net cash flow after organic investments was $12,088 million in 2024, down from $19,109 million in 2023, a decrease of 36.7%[161]. - Net investments in 2024 amounted to $17,829 million, with acquisitions net of asset sales at $1,406 million[153]. - The company reported a significant increase in acquisitions in Integrated LNG, totaling $1,417 million in 2024, compared to $1,253 million in 2023, an increase of 13.1%[155]. Financial Health and Ratios - Gearing at the end of 2024 was below 10%, indicating strong financial health for TotalEnergies[39]. - Return on equity (ROE) was 15.8% in 2024, down from 20.4% in 2023[60]. - The Gearing ratio for TotalEnergies rose to 8.3% in 2024 from 5.0% in 2023, indicating a higher leverage position[167]. - The net-debt-to-capital ratio increased to 8.3% in 2024 from 5.0% in 2023, primarily due to changes in net debt[183]. Dividends and Shareholder Returns - TotalEnergies plans to distribute a final 2024 dividend of €0.85/share, resulting in a 7% increase for the 2024 dividend to €3.22/share compared to 2023[44]. - TotalEnergies repurchased 120,463,232 shares in 2024, with a total cost of $7.33 billion, compared to 144,700,577 shares for $9.00 billion in 2023[182]. Market Conditions and Pricing - TotalEnergies' average liquids price realization increased by 1% to $77.1/b in 2024, while average gas price realization decreased by 16% to $5.54/Mbtu[66]. - The Brent price averaged $80.8/b in 2024, a decrease of 2% from $82.6/b in 2023[66]. - The European Refining Margin Marker (ERM) was $39.5 per ton in 2024, down from $71.0 per ton in 2023[128]. Strategic Changes and Sanctions - The company has ensured no further capital will be provided for new projects in Russia, adhering to European sanctions[208]. - TotalEnergies has suspended its rights and obligations under contracts with Arctic LNG 2 following US sanctions imposed on November 2, 2023[223]. - The company stopped producing lubricants in Russia by the end of May 2022 and announced the sale of these activities in March 2023[224].