TotalEnergies Q4 Earnings Dip 15% Amidst Market Challenges
French energy giant TotalEnergies reported a 15% decline in its fourth-quarter earnings on Wednesday. The drop primarily stemmed from lower oil prices and sluggish fuel demand.
Adjusted net income for Q4 2024 reached $4.4 billion, down from $5.2 billion in the same period last year but exceeding analysts' expectations of $4.2 billion.
Western oil majors have been grappling with slowing economic activity and competition from new African and Asian refineries, leading to depressed profit margins in the crude oil refining sector. This trend is projected to persist in 2025.
Total's European refining margin in Q4 stood at $25.90 per metric ton, significantly lower than the $50.10 recorded in late 2023. Crude oil prices also declined by nearly $10 per barrel year-over-year.
Despite these challenges, Total's integrated LNG division provided a bright spot. Traders capitalized on market volatility, boosting earnings by 35% to $1.4 billion.
The company anticipates improved gas prices, increased upstream production, and higher power sales in early 2025.
Total announced a 7% hike in its 2024 dividend to 3.22 euros per share and confirmed $2 billion in quarterly share buybacks for 2025.