TotalEnergies investors received positive news during the unveiling of the company’s latest quarterly financials. Despite a 22% decrease in adjusted net income to $5.1 billion and a 15% decline in cash flow to $8.2 billion, the French energy major authorized a $2 billion share buyback for the upcoming quarter. Additionally, the company increased its first interim dividend to €0.79 ($0.84) per share, an increase of nearly 7%, showing a commitment to keeping shareholders happy.
The decrease in adjusted net income and cash flow can be attributed to a historically higher base recorded in the corresponding quarter in 2023, impacted by the Russia-Ukraine war and its effect on energy prices at the time. However, despite these declines, TotalEnergies’ published earnings surpassed market expectations. This, combined with the dividend and buyback announcements, is expected to have a positive impact on the company’s share price.
Following the positive earnings report, TotalEnergies’ share price saw an increase, closing at €69.48, up 2.09% for the session, 2.86% for the week, and 9.47% for the month. There is growing investor confidence in the company, especially as it celebrates its 100th year of founding in 2024. CEO Patrick Pouyanné stated that the results align with company goals and are reflective of sustained oil prices and softening gas prices.
In a move that mirrors the actions of other European supermajors, Pouyanné mentioned the possibility of a primary listing in New York. He noted the potential for a bigger and more supportive investor base in the U.S., compared to Europe. This comes as Shell’s CEO also expressed openness to a primary listing move to New York if a higher valuation is not met in London. TotalEnergies’ board is expected to receive a report on the potential listing by September.
TotalEnergies reported an oil and gas production average of 2.46 million barrels of oil equivalent per day, driven by a 6% growth in liquefied natural gas production and new start-ups in Brazil and Nigeria. Despite this, the company anticipates a marginal decline in output in the second quarter due to planned maintenance. However, production upticks at projects in Brazil and Denmark are expected to partially offset these declines, highlighting the company’s commitment to operational efficiency and growth.
