TotalEnergies (TTE) Q1 2025 earnings summary

Executive summary

• Delivered robust Q1 2025 results amid heightened macroeconomic and geopolitical uncertainty, with strong production growth and resilient cash flows, though adjusted net income fell 18% year-over-year to $4.2B due to lower prices and weak refining margins.

• Hydrocarbon production rose 4% year-over-year to 2.56 million boe/d, driven by new projects in Brazil, US, Malaysia, Argentina, and Denmark.

• Integrated Power production increased 18% year-over-year, with renewables and flexible gas capacity expansion.

• Maintained focus on cost control, capital discipline, and attractive shareholder returns, including a 7.6% dividend increase to EUR 0.85/share and $2 billion in share buybacks.

• Board remains committed to consistency in strategy and capital allocation, emphasizing resilience and adaptability in a volatile environment.

Financial highlights

• Adjusted net income of $4.2 billion and cash flow from operations (CFFO) of $7 billion in Q1 2025, with adjusted EBITDA at $10.5 billion, both down year-over-year.

• Return on capital employed (ROCE) at 13.2% and return on equity (ROE) at 15.1% for the twelve months ending March 2025.

• Interim dividend set at EUR 0.85/share, up 7.6% year-on-year, and $2 billion in share buybacks executed in Q1.

• Net investments totaled $4.9 billion in Q1, up 38% year-over-year; full-year guidance reiterated at $17–$17.5 billion.

• Gearing at 14.3% due to seasonal working capital build; normalized gearing would be 11%.

Outlook and guidance

• Full-year 2025 production growth guidance reiterated at more than 3% over 2024; Q2 production expected to grow 2–3% year-on-year.

• Oil prices remain volatile ($60–$70/b) amid OPEC+ production changes and US tariffs; refining and petrochemical margins expected to stay weak.

• Average energy selling price anticipated between $9 and $9.5 per mL cube in Q2 2025; LNG average selling price guidance set at $9–$9.5/Mbtu.

• Integrated LNG cash flow guidance maintained between $5.5 and $6 billion for 2025.

• Net investments guidance for 2025 reiterated at $17–$17.5B, with $4.5B for low-carbon energies.