TotalEnergies (TTE) Q2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in oil & gas and integrated power, advancing major projects and executing on strategic priorities for growth and resilience.

• Adjusted net income for 1H24 was $9.8B, down 15% year-over-year, with Q2 2024 at $4.7B; cash flow from operations for 1H24 was $15.9B.

• Major upstream milestones included new production in Brazil, Nigeria, Norway, and acquisitions in Malaysia and South Africa; sanctioned projects in Angola, Brazil, Oman, and Nigeria.

• Integrated Power expanded with acquisitions in Texas, UK, and Germany, and sanctioned a 100 MW battery storage project; renewable capacity reached 24 GW, up 26% year-over-year.

• Employee ownership now exceeds 8% following a capital increase and share allocation.

Financial highlights

• Adjusted EBITDA for 1H24 was $22.6B, down 11% year-over-year; adjusted net income was $9.8B, down 15%; Q2 2024 adjusted net income was $4.7B.

• Cash flow from operations for 1H24 was $15.9B; net cash flow rose 9% to $7.7B.

• ROACE reached 16.6%; ROE was 18.7% for the twelve months ended June 30, 2024.

• Gearing improved to 10.2% at June 30, 2024, from 11.1% a year ago.

• Shareholder payout at 45% of CFFO for H1 2024; dividend per share for Q2 2024 was €0.79, up nearly 7% year-over-year.

Outlook and guidance

• Upstream production expected at 2.4–2.49 million boe/d in Q3 2024, with Anchor project startup in the US Gulf of Mexico.

• Brent prices remain above $80/bbl; OPEC+ continues market support.

• European refining margins are under pressure from low diesel demand and market normalization; refining utilization rate to exceed 85%.

• Net investments for 2024 guided at $17–$18B, with $5B for Integrated Power.

• Guidance for more than 40% shareholder payout of CFFO remains unchanged.