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PARIS - TotalEnergies (EPA:TTEF) SE (Paris:TTE) (LSE:TTE) (NYSE:TTE), a major player in the global energy market, has released preliminary financial details for the fourth quarter of 2024, indicating varied results across its business segments. The data, which has not been audited, reflects a period marked by fluctuating commodity prices and refining margins.
In the upstream sector, hydrocarbon production is expected to show a slight increase, staying within the forecasted range of 2.4 to 2.45 million barrels of oil equivalent per day (Mboe/d). However, exploration and production earnings are likely to be impacted by a $5 per barrel drop in oil prices, with this effect partially offset by higher realized gas prices.
The integrated LNG segment is poised to benefit from a 6% production boost and strong trading performance, similar to the final quarter of 2023. LNG prices realized were above $10 per million British thermal units (Mbtu), contributing positively to the results.
In the power sector, the fourth quarter results are projected to be between $500 million and $600 million, aligning with the annual cash flow guidance of over $2.5 billion. This robust performance underscores the company's growing presence in the integrated power market.
Despite these gains, the downstream environment remains challenging, with weak refining and chemical margins. Nevertheless, downstream results are expected to reflect a $10 per ton increase in European refining margins, indicating a slight improvement in the sector.
TotalEnergies anticipates its gearing ratio to be under 10%, benefiting from an approximately $5 billion positive contribution to working capital in the quarter, including $1.5 billion from exceptional items.
The company also provided sensitivity analysis for 2024, outlining the estimated impacts of changes in the dollar exchange rate, average liquids price, European gas price, and European Refining Margin Marker (ERM) on its adjusted net operating income and cash flow from operations.
This preliminary data and forward-looking statements are based on TotalEnergies' internal reporting and assumptions deemed reasonable as of the date of the press release. The company emphasizes that actual results could significantly differ from these estimates, subject to various economic, financial, and regulatory uncertainties.
Investors should note that the information provided is based on a press release statement from TotalEnergies and is intended to offer an overview of the company's performance rather than comprehensive financial results or forecasts.
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