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 2Q24 at $4.7B, down 9% sequentially.

• Advanced transition strategy with key investments in upstream, LNG, and renewables, including major project sanctions in Angola, Brazil, Oman, and Nigeria.

• Enhanced integrated power business with acquisitions in Texas, UK, and Germany, and sanctioned a 100 MW battery storage project.

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

Financial highlights

• Reported Q2 2024 adjusted net income of $4.7B; H1 2024 adjusted net income close to $10B.

• Generated $7.8B cash flow in Q2 and nearly $16B in H1 2024.

• ROACE reached 16.6%; maintained strong CapEx discipline with 2024 net investment guidance of $17–$18B.

• Executed $2B in Q2 buybacks, with up to $2B authorized for Q3; interim dividend of €0.79/share, up 7% YoY.

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

Outlook and guidance

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

• Anticipates refining utilization rates above 85% in Q3, benefiting from Donges refinery restart.

• Reiterated 2024 net investment guidance of $17–$18B, with $5B for Integrated Power.

• Expects working capital builds from Q1 to continue reversing over coming quarters.

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