By Pierre Bertrand


TotalEnergies reported an increase in net profit in the first three months of the year, exceeding analysts' expectations, and said it would buy back $2 billion of shares this quarter.

The French oil and gas company said net profit was $5.72 billion compared with $5.56 billion a year ago. On an adjusted basis, net profit came to $5.1 billion, a 22% on-year decrease, largely due to softened natural gas prices.

The result compares with analysts' expectations of $4.88 billion in net profit, according to Visible Alpha consensus.

In addition, TotalEnergies said it would pay a first interim dividend of 0.79 euros ($0.85) a share for 2024.

Sales in the period came to $56.28 billion, compared with $62.60 billion a year prior, as hydrocarbon production fell 2% on year to 2.46 million barrels of oil equivalent a day and prices for crude oil rose but natural gas prices fell.

The company had previously anticipated first-quarter hydrocarbon production higher than 2.4 million boe/d.

TotalEnergies said average Brent crude prices came to $83.2 a barrel, a 3% on-year increase, while Henry Hub gas prices fell 22% in the quarter.

The oil major said that it anticipated lower hydrocarbon production in the second quarter compared with the first quarter due to planned maintenance.

In the second quarter, TotalEnergies said it expects hydrocarbon production to be between 2.4 million and 2.45 million barrels of oil equivalent a day.

The company, which earlier this week said it would further expand its natural-gas holdings in Malaysia, said its hydrocarbon production in the quarter benefited from production growth in liquefied natural gas and from the start of operations in Brazil and Nigeria.

Nevertheless, adjusted earnings from upstream activities, which fill the bulk of the company's coffers, declined 4% on year, while integrated LNG earnings fell 41% in the quarter. The company also posted on-year declines to adjusted earnings at its marketing and refining business units.

Adjusted earnings from the company's integrated power segment climbed by 65% to $611 million, the only business segment in the quarter to report growth.

The unit reported net power production of 9.6 terawatt hours, up 14% on year, while renewable power production increased 56% on year. The unit's net installed capacity as of the end of the quarter stood at 19.5 gigawatts, a 54% on-year increase, TotalEnergies said.

The company has been actively working on expanding and developing its integrated power unit as the oil and gas major works on its energy transition strategy. Late last year, the company bought three gas-fired power plants with a total capacity of 1.5 gigawatts in Texas for $635 million.

TotalEnergies confirmed on Friday its plan to invest $5 billion in the business segment, of the $17 billion to $18 billion of net investments planned for the year.


Write to Pierre Bertrand at pierre.bertrand@wsj.com


(END) Dow Jones Newswires

04-26-24 0411ET