During the fourth quarter, TotalEnergies sold 10.8 million tonnes of LNG, down compared to 11.8 million tonnes in the same period last year, but up 14 percent compared to 9.5 million tonnes in the prior quarter.
TotalEnergies said LNG sales, although down year-on-year reflecting lower LNG demand in Europe, were up quarter-to-quarter, notably due to increased spot volumes in a context of seasonal inventory replenishment.
During 2024, LNG sales decreased 10 percent to 39.8 million tonnes.
Hydrocarbon production for LNG in the fourth quarter was up 6 percent quarter-to-quarter to 494 kboe/d, notably due to the end of unplanned maintenance at the Inpex-operated Ichthys LNG plant in Australia, which occurred in the third quarter.
The production also rose compared to 464 kboe/d in the fourth quarter of last year, and it rose 8 percent to 487 kboe/d in 2024.
LNG earnings down
The company’s integrated LNG business logged a decline in its adjusted net operating income in the fourth quarter and 2024.
TotalEnergies said adjusted net operating income was $1.43 billion in the fourth quarter, slightly down compared to $1.45 billion in the same quarter last year.
However, adjusted operating income rose 35 percent compared to the prior quarter, driven by higher hydrocarbon production for LNG, an average LNG selling price above $10/MMBtu, and LNG trading results benefitting from higher market volatility, the company said.
Cash flow from operations excluding working capital (CFFO) was $1.45 billion, up 63 percent on the quarter and down compared to $1.76 billion in the same quarter in 2023.
Last month, TotalEnergies said that it expects its fourth-quarter LNG results to benefit from higher production.
In 2024, adjusted net operating income for integrated LNG was $4.87 million, down 21 percent year-on-year, mainly due to lower average LNG selling prices and low market volatility during the first three quarters that impacted gas trading results, according to TotalEnergies.
Cash flow from operations excluding working capital (CFFO) was $4.9 billion, down 33 percent year-on-year for the same reasons.
LNG price climbs
TotalEnergies reported a rise in its average price for equity LNG sales in the fourth quarter of last year.
The French firm said the average LNG price was $10.37/MMBtu in the October-December period, a rise of 0.9 percent compared to $10.28/MMBtu in the same quarter in 2023.
The average price also rose compared to $9.91/MMBtu in the third quarter, $9.32/MMBtu in the second quarter, and $9.58/MMBtu in the first quarter of 2024.
Net income
Overall, TotalEnergies reported adjusted net income of $4.4 billion in the fourth quarter.
This is a rise of 8 percent compared to the prior quarter and a drop compared to $5.23 billion in the same quarter in 2023.
In 2024, adjusted net income dropped 21 percent.
“In 2024, TotalEnergies reported adjusted net income of $18.3 billion and cash flow of $29.9 billion in a softer environment mainly affected by a sharp decline in refining margins, after two exceptional years,” chief executive Patrick Pouyanne, said.
“In view of the free cash flow growth outlook and share buybacks executed in 2024 (5 percent of the share capital), the board of directors will propose at the shareholders’ meeting to be held on May 23, 2025, the distribution of a final 2024 dividend of €0.85/share, resulting in an increase of 7 percent for the 2024 dividend to €3.22/share, compared to the 2023 dividend,” Pouyanne said.
Average LNG selling price to be above $10/MMbtu in Q1
TotalEnergies said European gas prices increased at the end of 2024 and forward markets currently expect prices to be above $13/MMBtu in the first quarter of 2025, supported by high winter consumption and rapid inventory declines in Europe in the context of the interruption of Russian imports via Ukraine.
“Gas markets should remain in tension in 2025 due to very limited expected capacity additions related to delays of some projects,” the company said.
TotalEnergies expects more than 40 Mt of LNG sales in 2025.
“Given the evolution of oil and gas prices in the recent months and the lag effect on price formulas, TotalEnergies anticipates its average LNG selling price will be above $10/MMBtu in the first quarter of 2025,” the company said.
In 2025, TotalEnergies anticipates its hydrocarbon production will grow more than 3 percent, benefiting from the ramp-up of 2024 start-ups and production start-ups, notably Ballymore in the Gulf of Mexico and Mero-4 in Brazil.
For 2025, TotalEnergies expects net investments of $17 to $17.5 billion, of which $4.5 billion is dedicated to low-carbon energies, mostly integrated power, the company said.
