Half Year 2024 TotalEnergies SE Earnings Call Transcript
Key Points
- TotalEnergies SE (TTE) reported strong financial performance with a second-quarter adjusted net income of $4.7 billion and a first-half total of close to $10 billion.
- The company generated $7.8 billion of cash flow during the second quarter and close to $16 billion for the first half of the year.
- TotalEnergies SE (TTE) maintained strong CapEx discipline and reiterated its 2024 net investment guidance of $17 billion to $18 billion.
- The company continues to build on its track record of attractive shareholder distribution with $2 billion buybacks executed during the second quarter and up to $2 billion authorized for the third quarter.
- TotalEnergies SE (TTE) has made significant progress in its Integrated Power business, achieving a return on capital employed (ROCE) above 10% this quarter.
- Refining margins continue to normalize with the European refining margin market down 37% quarter-to-quarter.
- LNG sales decreased by 18% quarter-over-quarter, notably due to lower spot purchases in the context of lower LNG demand in Europe.
- The company's utilization rates in refining improved but were still impacted by low diesel demand in Europe and market normalization following the disruption in Russian supply.
- Integrated LNG adjusted net operating income and cash flow were both $1.2 billion in the second quarter, reflecting a lower average LNG price and lower sales.
- The company faces inflationary pressures, with costs being 20% higher than the low point in 2020, impacting project economics.
Good morning or good afternoon, everyone. Patrick Pouyanne speaking. So before Jean-Pierre will go through the second quarter financials, I have thought that midyear would be a good time to check-in on the progress that we have been making. I would say the great progress in just the last 10 months since we presented our strategy last September at the Investor Day in New York or I would say, balanced transition strategy, which is incurred on two fundamental pillars: the oil and gas on one side with a perspective of growth; and Integrated Power on the other side, and both pillars are driving the growth for the company.
So during these last -- first semester and last quarter, beyond the excellent operational performance, which was delivered on our oil and gas pillar, we have sanctioned several major upstream projects. But I would like to remind you on the oil side, with the financial decisions, some three large FPSOs Kaminho in Angola, Sépia 2 and Atapu 2 and both which are world
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