TotalEnergies is this week’s choice. As usual, we will take their financial statement and produce some visuals to make it easier to understand how they performed in 24Q2.

In case you missed it, here is the TotalEnergies 24Q1 analysis.

Today in a Snapshot

📈Financial Performance: U$3.8B in net profit with a total margin of 7.0%, down from U$4.2B (7.2%) in 23Q2.
💵Cashflow: Consumed U$2.4B of cash reserves, and paid U$5.5B down in debt.
⚖️Balance Sheet: The D:E ratio holds steady at a strong 1.33.

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TotalEnergies saw a reduction in net revenue from U$57.6B in 23Q2 to U$55.2B. Overall, this yielded a net profit of U$3.8B (7.0% margin), down from U$4.2B(7.2% margin) in 23Q2.

Exploration & Production: Total hydrocarbon production of 1,943kboe/d (-4% ^Y/Y)

Integrated LNG: Total LNG production increased to 498kboe/d (+14% ^Y/Y). However, the total sales dropped by 20% due to lower European demand. Furthermore, this resulted in a 5% lower average price of LNG. This was partially offset by investments maturing in this sector.

Integrated Power: Net power production was 9.1 TWh (down 5%), with the total installed renewable generation capacity at 24 GW (up by 0.5GW). The average price per TWh reduced by 4%.

Refining & Chemical: Total refinery throughput was up +3% to 1,511kb/d. This is attributed to lower planned maintenance during the period. This was partially offset by lower refining margins.

Marketing & Services: Slightly lower (-2%), attributed to diesel demand, resulted in a total sales volume of 1,363 kb/d.

Acquisitions

Q2 2024: $544 million, mainly for a 20% stake in the US Dorado gas field and German renewable energy aggregator Quadra Energy.

H1 2024: $1.62 billion total, including Q2 purchases plus 1.5 GW Texas gas capacity, German battery developer Kyon, and US carbon storage firm Talos Low Carbon Solutions.

Divestments

Q2 2024: $324 million, primarily from UK Seagreen offshore wind farm partial sale and French petrochemical asset disposal.

H1 2024: $1.90 billion total, including Q2 sales plus retail network sales in Benelux countries and a 15% stake in Azerbaijan's Absheron field.

TotalEnergies required U$2.4B in additional cashflow this quarter, reducing their total stockpile by 9% to U$20.6B. Another notable item is the U$5.5B spent to pay down the total borrowings.

The balance sheet reveals all. Although U$5.5B was paid down in current liabilities loans, we can see that a new non-current debt of U$4.3B was added. Overall, this resulted in a reduction of total labilities by 2%.

TotalEnergies didn’t post a specific Q2 equity walk, so as usual, I have interpolated it from the Q1 and H1 equity walk. The equity walk shows that most of the net income for the quarter was spent on dividends.

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Cheers,

Connor

All data can be found on the TotalEnergies Investors website.