TotalEnergies' fourth-quarter profits drop on low oil demand
TotalEnergies, the French oil giant, reported a 15% decline in its fourth-quarter earnings Wednesday. The company closed out a year that was marked by low oil and fuel prices. This was partially offset by increased electricity sales and trading of liquefied gas. The adjusted net income for 2024's final quarter was $4.4 billion. This is down from the $5.2 billion it earned a year ago, but higher than the $4.1 billion in the third quarter. Visible Alpha, a consensus of six analysts, said that the results exceeded expectations. Western oil majors face reduced economic activity, and new refineries in Africa and Asia are a threat to their profits. This trend is expected continue into 2025.
Total's European refinery margin was $25.90 a metric ton for the fourth quarter -- less than half of the $50.10 it would have been in 2023. Meanwhile, crude oil prices are nearly $10 lower per barrel than last year. Shell, Chevron, and ExxonMobil reported their fourth-quarter earnings last week. The decline in refining profits was a major factor.
Total ended the year with a positive note, thanks to its integrated division of LNG. The traders were able to capture higher profits because of market volatility. This resulted in a 35% increase in earnings to $1.4 billion.
The company expects gas prices to rise, as well as upstream production and energy sales in the early part of 2025. Total has announced an increase of 7% in its dividend for 2024 to 3.22 euros and confirmed that it will buy back shares at a rate of $2 billion every quarter.
(source: Reuters)
