French multinational integrated energy and petroleum company TotalEnergies has reported better-than-expected fourth-quarter (Q4) 2024 earnings, driven by better trading profits in the gas market.
Despite low oil prices and weak fuel demand, the French energy company reported an adjusted net income of $4.4bn for the final quarter of 2024, slightly higher than the anticipated $4.2bn.
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Adjusted net income was down 15% from $5.2bn a year previously, but showed an improvement from the third quarter’s $4.1bn.
The company anticipates higher gas prices, increased upstream production and power sales in early 2025.
TotalEnergies CEO Patrick Pouyanne highlighted plans to continue investing in renewable energy in the US.
He also noted that US LNG [liquefied natural gas] exports are expected to almost double in the coming years.
TotalEnergies is the largest current LNG exporter in the US, with more than 10 million tonnes (mt) under contract.
The company announced a 7% increase in its 2024 dividend to €3.22 ($3.33) per share and confirmed $2bn in share buybacks per quarter for 2025.
Western oil majors, including TotalEnergies, face challenges from reduced economic activity and competition from new African and Asian refineries.
This has led to a decline in profit margins for converting crude oil into fuel products, a trend expected to continue into 2025.
TotalEnergies’ European refining margin for the fourth quarter was $25.90 per metric tonne, a significant drop from the $50.10 achieved in late 2023, as Reuters has reported.
Crude oil prices were almost $10 per barrel lower than the previous year. Shell, Chevron and ExxonMobil also reported lower fourth-quarter earnings due to declining refining margins.
TotalEnergies ended the year on a positive note, with its integrated LNG division seeing a 35% increase in earnings to $1.4bn, thanks to market volatility and higher trading profits.
