TotalEnergies Reports Q4 2024 Forecast with Price Adjustments

TotalEnergies SE reveals fourth-quarter outlook amid price changes. Hydrocarbon production expected to rise slightly despite oil price dip. The market anticipates impacts on stock performance given these reports.

Date: 16-01-2025

AI Rating: 5

Earnings Impact: The report outlines a reduction in oil prices, with Brent decreasing from $84.3 to $74.7 per barrel and average liquids price dropping from $80.2 to $71.8. This could adversely affect revenue and profit margins.

Hydrocarbon Production: Production is expected to rise slightly within a set range (2.4 to 2.45 Mboe/d), which may indicate stable operational performance despite price challenges.

LNG Production: A notable increase of 6 percent in production, coupled with LNG realizations above $10/Mbtu, is expected, which may lead to positive contributions to revenue.

Integrated Power Results: The forecast suggests results between $500 million and $600 million. Annual cash flow aligns with guidance, indicating operational stability overall.

Downstream Challenges: A weak downstream environment is noted, impacting refining and chemicals margins, though marginally improving with a $10/t increase in European refining margins.

Financial Outlook: The company is maintaining a gearing below 10 percent, bolstered by a positive $5 billion working capital contribution in the quarter, which could enhance investor confidence.

Stocks: TTE