TotalEnergies Q4 Earnings Surpass Estimates, Revenues Fall Y/Y

Core Insights - TotalEnergies SE reported fourth-quarter 2024 operating earnings of $1.90 per share, exceeding the Zacks Consensus Estimate of $1.87 by 1.6%, but down 12% from $2.16 in the previous year [1][2] - Total revenues for the fourth quarter were $47.11 billion, a slight decline of 0.3% from $47.26 billion year-over-year, with a more significant year-over-year drop of 13.9% [3] Financial Performance - Hydrocarbon production averaged 2,427 thousand barrels of oil equivalent per day, down 1.4% year-over-year, attributed to natural field declines [4] - Liquid production averaged 1,445 thousand barrels per day, down 4% year-over-year, while quarterly gas production increased by 3.2% to 5,323 thousand cubic feet per day [4][5] - The realized price for Brent crude fell 11.4% to $74.7 per barrel, while the average realized liquid price decreased by 10.5% to $71.8 per barrel [6] Operational Highlights - Net power production reached 11.4 terawatt hours, up 42.5% year-over-year, with nearly 60% generated from renewable sources [7] - Net operating income was $4.99 billion, down 12.8% year-over-year due to lower refining margins, while interest expenses rose 19% to $786 million [7] - TotalEnergies repurchased 32.9 million shares for $2 billion in the fourth quarter, totaling 121 million shares for $8 billion in 2024 [8] Segment Performance - Exploration & Production's operating earnings were $2.30 billion, down 17.7% from $2.8 billion year-over-year [9] - Integrated LNG's operating income was $1.43 billion, down 1.6%, while Integrated Power's operating income increased by 9.1% to $575 million [10] Financial Position - Cash and cash equivalents as of December 31, 2024, were $25.84 billion, down from $27.26 billion a year earlier, with gearing increasing to 13.8% from 10.9% [11] - Cash flow from operating activities in 2024 was $30.85 billion, a decrease of 24% year-over-year [11] Future Guidance - TotalEnergies expects first-quarter 2025 hydrocarbon production to be in the range of 2,500-2,550 thousand barrels of oil equivalent per day, with planned investments of $17-$17.5 billion in 2025, including $4.5 billion for low carbon energies [12]