Q3 2024 TotalEnergies SE Earnings Call Transcript
Key Points
- TotalEnergies SE (TTE) reported a robust adjusted net income of $4.1 billion for the third quarter and $13.9 billion for the first nine months of 2024, demonstrating strong profitability.
- The company achieved first oil at the high-margin Encore project in the Gulf of Mexico and first gas at a semi-field offshore in Argentina, indicating successful project ramp-ups.
- TotalEnergies SE (TTE) maintained a low breakeven portfolio with exploration and production OpEx per barrel at $4.9, which is best in class.
- The company strengthened future cash flows by signing several medium-term LNG sales contracts in Asia, totaling 4 million tons.
- TotalEnergies SE (TTE) continues to deliver on its integrated power targets, with year-to-date adjusted net operating income up 21% and cash flow up 35% year on year.
- Refining margins in Europe fell by 66% quarter to quarter, below the company's breakeven level of $25 per ton, impacting profitability.
- The company's cash flow in the quarter was insufficient to cover CapEx, dividends, and buybacks, raising concerns about cash flow generation.
- TotalEnergies SE (TTE) faced unplanned shutdowns and security-related disruptions in Libya, affecting oil and gas production.
- The company reported a $1.1 billion negative adjustment to net income due to impairments linked to SunPower's bankruptcy and the exit from South African blocks.
- Integrated LNG adjusted net operating income was impacted by lower LNG production and a lack of market volatility, resulting in reduced cash flow.
Ladies and gentlemen, welcome to the TotalEnergies third-quarter 2024 results conference call.
I now hand over to Patrick Pouyanne, Chairman and CEO, Jean-Pierre Sbraire, CFO, who will lead you through this call. Sir, please go ahead.
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Good morning. Good afternoon, everyone. Patrick Pouyanne here, together with Jean-Pierre. Nice to be with you again after seeing you many view in person at our Investor Day in New York area this month. I just spent the last three weeks in road shows, I would like just to share with you that we got the constructive feedback from the investors on balanced strategy.
And the level of understanding of our growth profile on both pillars, oil and gas with the quality and depth of our upstream portfolio on one side, but also on the other side, the integrated power is now, I would say, better understood on both sides of the Atlantic. As discussed at the Investor Day, the clarity, consistency of our strategy must remain our priority. Discipline on
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