TotalEnergies SE (TTE) Bundle
A Brief History of TotalEnergies
TotalEnergies SE, a prominent player in the energy sector, has undergone significant transformations and growth through the years, particularly as of 2024. The company has positioned itself as a leader in the transition towards renewable energy while maintaining a robust portfolio in traditional oil and gas operations.
Financial Performance Overview
In the first nine months of 2024, TotalEnergies reported a net income of $11.802 billion, a decline of 28% from $16.321 billion in the same period of 2023. Adjusted net income for the same period was $13.858 billion, down 23% from $17.950 billion the previous year. The company’s earnings per share (EPS) for the third quarter of 2024 was $0.96, compared to $2.73 in the third quarter of 2023.
| Metric | 2024 (9M) | 2023 (9M) |
|---|---|---|
| Net Income (in billions) | $11.802 | $16.321 |
| Adjusted Net Income (in billions) | $13.858 | $17.950 |
| Earnings Per Share (EPS) | $0.96 | $2.73 |
Operational Highlights
TotalEnergies has continued to expand its renewable energy capabilities, with gross renewable power generation capacity reaching 24.2 GW by September 2024, marking a 20% increase year-over-year. The company’s cash flow from operating activities for the first nine months of 2024 was $18.347 billion, a decrease of 25% compared to $24.529 billion in the same period of 2023.
Market Trends and External Factors
As of late 2024, TotalEnergies is navigating a volatile oil market with Brent crude prices averaging $80.3 per barrel. Additionally, European gas prices have shown fluctuations, with prices around $12-$13 per Mbtu expected for the fourth quarter. The company has also noted a refining utilization rate above 85%.
Investment Strategies
TotalEnergies has projected net investments between $17 billion and $18 billion for 2024. The company’s cash flow used in investing activities reached $13.587 billion in the first nine months of 2024, down 14% from $15.822 billion in 2023. Organic investments during this period were $12.584 billion.
| Investment Metric | 2024 (9M) | 2023 (9M) |
|---|---|---|
| Net Investments (in billions) | $13.587 | $15.822 |
| Organic Investments (in billions) | $12.584 | $11.987 |
| Total Cash Flow from Operating Activities (in billions) | $18.347 | $24.529 |
Dividends and Shareholder Returns
In 2024, TotalEnergies declared an interim dividend of €0.79 per share. The company has also been active in share buybacks, repurchasing 88.1 million shares for approximately $6 billion during the first nine months of 2024.
Environmental Commitments
TotalEnergies is committed to reducing its carbon footprint, focusing on transitioning towards greener energy sources. The company aims to achieve carbon neutrality by 2050, aligning its operations with global climate goals.
Conclusion
The history of TotalEnergies as of 2024 reflects a company deeply engaged in both traditional and renewable energy sectors, with a robust financial performance despite the challenges of a fluctuating market. Its strategic investments and commitment to sustainability are expected to shape its future trajectory.
A Who Owns TotalEnergies SE (TTE)
Ownership Structure
As of 2024, TotalEnergies SE (TTE) has a diverse ownership structure comprising various institutional and individual shareholders.
| Shareholder Type | Percentage Ownership |
|---|---|
| State of France | 16.0% |
| Institutional Investors | 60.0% |
| Individual Investors | 24.0% |
Major Shareholders
The following entities are among the largest shareholders of TotalEnergies SE:
| Shareholder | Percentage Ownership | Type |
|---|---|---|
| French State | 16.0% | Government |
| The Vanguard Group | 5.2% | Institutional Investor |
| BlackRock, Inc. | 4.9% | Institutional Investor |
| Amundi Asset Management | 3.3% | Institutional Investor |
| BNP Paribas Asset Management | 2.5% | Institutional Investor |
Recent Changes in Ownership
In 2024, TotalEnergies SE has seen some fluctuations in its shareholder base:
- Increased holdings by major institutional investors like Vanguard and BlackRock.
- Continued support from the French government, maintaining its significant stake.
- New entrants among institutional investors, reflecting growing interest in renewable energy investments.
Shareholder Engagement
TotalEnergies engages with its shareholders through regular communications and annual general meetings (AGMs) to discuss company strategy and performance.
Market Capitalization
As of September 30, 2024, TotalEnergies SE had a market capitalization of approximately $130 billion.
Stock Performance
Throughout the third quarter of 2024, TotalEnergies SE's stock performance has been influenced by market conditions, resulting in:
| Quarter | Stock Price (USD) | Change (%) |
|---|---|---|
| Q3 2024 | $56.75 | -8.5% |
| Q2 2024 | $62.00 | -4.3% |
| Q1 2024 | $64.80 | +3.0% |
Future Outlook
Looking ahead, TotalEnergies SE aims to enhance shareholder value through strategic investments in renewable energy and sustainable practices, thereby attracting new investors and retaining existing ones.
TotalEnergies SE (TTE) Mission Statement
Overview
TotalEnergies SE aims to be a world-class player in the energy sector, transitioning towards a sustainable energy future. The company's mission statement emphasizes its commitment to providing affordable, reliable, and cleaner energy solutions while respecting the environment and local communities.
Key Objectives
- Achieve net-zero emissions by 2050, in collaboration with society.
- Invest in renewable energy sources and technologies to diversify energy offerings.
- Enhance energy efficiency and reduce carbon footprints across operations.
- Engage with stakeholders to promote sustainable development and corporate responsibility.
Financial Performance
As of the third quarter of 2024, TotalEnergies reported significant financial metrics reflecting its operational efficiency and market positioning:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income (TotalEnergies share) | $2,294 million | $3,787 million | $6,676 million |
| Adjusted Net Income | $4,074 million | $4,672 million | $6,453 million |
| Earnings per Share (EPS) | $0.96 | $1.60 | $2.73 |
| Cash Flow from Operating Activities | $7,171 million | $9,007 million | $9,496 million |
| Return on Equity (ROE) | 16.6% | 18.7% | 22.3% |
| Return on Average Capital Employed (ROACE) | 14.6% | 16.6% | 20.1% |
Strategic Initiatives
TotalEnergies is actively pursuing various strategic initiatives to enhance its market presence:
- Investment in renewable energy projects, with a target of 55.9 GW in gross capacity across solar, wind, and other technologies.
- Acquisitions aimed at bolstering its portfolio in the renewable sector, including partnerships with Adani Green Energy and others.
- Focus on reducing greenhouse gas emissions, with Scope 1+2 emissions reported at 8.8 Mt for Q3 2024.
Investment and Shareholder Returns
The company has been proactive in managing its capital structure and returning value to shareholders:
| Action | Q3 2024 | Q2 2024 |
|---|---|---|
| Shares Repurchased | 29.3 million shares for $2 billion | 58.8 million shares for $4 billion |
| Total Share Repurchases (YTD) | 88.1 million shares for $6 billion | N/A |
Conclusion of Mission Statement Analysis
TotalEnergies SE's mission statement reflects its strategic focus on sustainable energy solutions while maintaining robust financial performance, navigating the complexities of the energy transition, and ensuring shareholder value through disciplined capital management.
How TotalEnergies SE (TTE) Works
Overview of TotalEnergies SE
TotalEnergies SE is a global multi-energy company engaged in oil, natural gas, and renewable energy. The company operates through various segments including Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services.
Financial Performance
As of September 30, 2024, TotalEnergies reported a net income of $2,294 million for Q3 2024, a decline of 39% from the previous quarter. The adjusted net income for Q3 2024 was $4,074 million, down from $4,672 million in Q2 2024, primarily due to lower refining margins and decreasing oil prices.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income (TotalEnergies Share) | $2,294 million | $3,787 million | $6,676 million |
| Adjusted Net Income | $4,074 million | $4,672 million | $6,453 million |
| Earnings per Share (Fully-Diluted) | $0.96 | $1.60 | $2.73 |
| Adjusted EBITDA | $10,048 million | $11,073 million | $13,062 million |
Segment Performance
TotalEnergies operates through several key segments, each contributing to overall financial performance. Below are the results by segment for the first nine months of 2024 compared to the previous year.
| Segment | Adjusted Net Operating Income (9M 2024) | Adjusted Net Operating Income (9M 2023) |
|---|---|---|
| Exploration & Production | $7,699 million | $8,140 million |
| Integrated LNG | $3,437 million | $4,744 million |
| Integrated Power | $1,598 million | $1,326 million |
| Refining & Chemicals | $1,842 million | $4,021 million |
| Marketing & Services | $998 million | $1,152 million |
Cash Flow and Investments
In Q3 2024, TotalEnergies generated cash flow from operating activities amounting to $7,171 million, compared to $9,007 million in Q2 2024. The cash flow from operations excluding working capital was $6,821 million in Q3 2024.
Total expenditures for the first nine months of 2024 were reported at $16,167 million, with a breakdown as follows:
| Type | Amount (in millions) |
|---|---|
| Exploration & Production | $7,242 million |
| Integrated LNG | $2,008 million |
| Integrated Power | $4,799 million |
| Refining & Chemicals | $1,266 million |
| Marketing & Services | $732 million |
Market Trends and Outlook
In the current market environment, TotalEnergies anticipates a fourth quarter 2024 hydrocarbon production between 2.4 and 2.45 million barrels of oil equivalent per day (Mboe/d). The refining utilization rate is expected to remain above 85% as the company manages the impacts of geopolitical tensions and market volatility.
The company confirmed its net investments guidance for 2024 at $17-$18 billion, focusing on enhancing its renewable energy portfolio and maintaining its traditional energy operations.
Gearing Ratio and Financial Health
The gearing ratio as of September 30, 2024, was reported at 12.9%, an increase from 10.2% in the previous quarter. Total debt stood at $37,824 million, while cash and cash equivalents were $25,672 million, reflecting a robust liquidity position.
| Financial Metric | Value |
|---|---|
| Current Borrowings | $11,805 million |
| Non-current Financial Debt | $37,824 million |
| Cash and Cash Equivalents | $25,672 million |
| Net Debt | $17,562 million |
| Shareholders' Equity | $116,059 million |
| Gearing Ratio | 12.9% |
How TotalEnergies SE (TTE) Makes Money
Revenue Streams
TotalEnergies generates revenue through various segments including Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. In the first nine months of 2024, the revenues from these segments were as follows:
| Segment | Revenue (M$) |
|---|---|
| Exploration & Production | 33,323 |
| Integrated LNG | 14,618 |
| Integrated Power | 17,573 |
| Refining & Chemicals | 95,657 |
| Marketing & Services | 50,596 |
| Total Revenues | 148,495 |
Exploration & Production
The Exploration & Production segment focuses on oil and gas extraction. In 2024, it reported external sales of $4,159 million and cash flow from operating activities of $12,888 million in the first nine months. The adjusted net operating income for this segment was $7,699 million.
Integrated LNG
This segment includes liquefied natural gas operations. For the first nine months of 2024, Integrated LNG generated $6,995 million in external sales, with an adjusted net operating income of $3,437 million. Cash flow from operating activities was $2,971 million.
Integrated Power
The Integrated Power segment encompasses renewable energy sources. It achieved external sales of $15,990 million in the first nine months of 2024, with an adjusted net operating income of $2,125 million. Cash flow from operating activities stood at $1,771 million.
Refining & Chemicals
This segment focuses on refining crude oil and producing chemicals. In the first nine months of 2024, it reported external sales of $71,975 million and an adjusted net operating income of $2,475 million. The cash flow from operating activities was negative at $(24) million.
Marketing & Services
Revenue from this segment was $62,901 million in the first nine months of 2024, with an adjusted net operating income of $1,304 million and cash flow from operating activities of $2,123 million.
Financial Performance
TotalEnergies reported a net income attributable to the TotalEnergies share of $11,802 million for the first nine months of 2024, a decrease of 28% compared to the previous year. The adjusted net income was $13,858 million, down 23% year-over-year.
Investments and Acquisitions
TotalEnergies made significant investments in renewable energy and gas projects. In the first nine months of 2024, total expenditures reached $16,167 million, which included $7,242 million in Exploration & Production, $2,008 million in Integrated LNG, and $4,799 million in Integrated Power.
Cash Flow Analysis
Cash flow from operating activities totaled $18,347 million for the first nine months of 2024, reflecting a decrease from $24,529 million in the previous year. The cash flow from operations excluding working capital was $22,766 million, a decrease of 17% year-over-year.
Stock Performance and Share Buybacks
As of September 30, 2024, TotalEnergies had repurchased 88.1 million shares for $6 billion in the first nine months. The fully diluted earnings per share stood at $4.99, a decline from $6.57 in the previous year.
Debt and Gearing Ratio
TotalEnergies reported a net debt of $17,562 million with a gearing ratio of 12.9% as of September 30, 2024, compared to 10.2% in the previous quarter. This reflects changes in financial leverage amid ongoing investments in growth areas.
Outlook
Despite fluctuations in oil prices, TotalEnergies is positioned for growth, particularly in the renewable energy sector, with a net investments guidance of $17-$18 billion for 2024.
| Financial Metric | Value (M$) |
|---|---|
| Net Income (TotalEnergies Share) | 11,802 |
| Adjusted Net Income | 13,858 |
| Cash Flow from Operating Activities | 18,347 |
| Cash Flow from Operations Excluding Working Capital | 22,766 |
| Net Debt | 17,562 |
| Gearing Ratio | 12.9% |
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Article updated on 8 Nov 2024
Resources:
- TotalEnergies SE (TTE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TotalEnergies SE (TTE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TotalEnergies SE (TTE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.