A TotalEnergies service station in Bugnicourt
TotalEnergies published Friday declining results for the first quarter of 2024, marked by the drop in gas prices, while estimating that oil prices should settle this year at a high level, beyond 80 dollars per month. barrel.
The oil and gas group, which is developing at a sustained pace in renewable energies, also reported discussions for liquefied natural gas (LNG) contracts with Asian customers.
After a 43% fall in its average gas sales price in the first quarter, to $5.11 per million British thermal units (Mbtu), TotalEnergies also highlighted that European gas prices currently remained between 8 and $10/Mbtu.
At the same time, he believes that high oil prices are “likely to impact refining margins”, which have been at high levels since the start of the year.
The recovery in LNG demand in Asia and the small increase in production capacity expected in 2024 support gas prices on the futures markets at more than 11 dollars/Mbtu for next winter, the group also argued.
TotalEnergies recorded over the January-March period an adjusted net profit of 5.1 billion dollars (-22%), an adjusted Ebitda of 11.5 billion (-19%) and a production of 2.461 million barrels per day ( -2%).
According to LSEG data, analysts on average expected adjusted net income of $5.0 billion.
The CEO of TotalEnergies, Patrick Pouyanné, also announced that the group was considering transferring its main listing from the Paris stock exchange to that of New York, in response to interest from American investors that it does not find among Europeans. .
SANCTIONING RUSSIAN LNG WOULD CAUSE PRICES TO JUMP – CEO
Asked during a conference call on the possibility that the European Union would sanction Russian LNG, from which TotalEnergies continues to import volumes from Yamal LNG, Patrick Pouyanné estimated that such a decision – that he does not see implemented before 2027 – risked resulting in a new explosion in prices, which could even benefit his company, according to him.
TotalEnergies is proposing an interim dividend of 0.79 euros per share (+6.8%) and indicates having authorized a share buyback program of $2 billion in the second quarter, as in the first.
The group confirmed its forecast of net investments of 17 to 18 billion dollars this year – including 5 billion dedicated to its electricity activities.
On the Paris Stock Exchange, TotalEnergies shares rose 1.92% to 69.37 euros at 3:25 p.m. while the CAC 40 advanced 0.57%.
The group also announced its decision not to include on the agenda of its general meeting of May 24 a proposed resolution, tabled by a group of shareholders representing less than 0.9% of the capital, aimed at obtaining a dissociation of the chairmanship of the board of directors and the general management of the company.
“The unity of the power of direction and representation of the company is part of a context of balance of powers particularly well supervised by the governance of the company (…)”, argued TotalEnergies in particular, recalling that It was up to its board to choose between a unified or dissociated mode of the functions of president and general director.
(Reporting by Benjamin Mallet and America Hernandez; editing by Blandine Hénault and Kate Entringer)