TotalEnergies Q2 profits plunge on reduced demand for refined products

TotalEnergies reported its second quarter and first half 2024 results on Thursday, with the company seeing lower net income because of faltering gas and refined product demand. 

Adjusted net income (TotalEnergies share) for the second quarter 2024 was $4.7bn (€4.33bn) which was 9% down from the first quarter of the year. This also missed market expectations of adjusted net income remaining the same as the second quarter of 2023, at $4.96 billion. 

Adjusted net income (TotalEnergies share) for the first half of the year was $9.8bn, which was 15% down from the first half 2023. 

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for Q2 2024 was $11.1bn, which was 4% below the Q1 2024. Adjusted EBITDA for H1 2024 was $22.6bn, which was 11% less than the first half of 2023. 

The company’s earnings from its refining and chemicals unit came in at $1,601m in the first half of 2024, which was 39% down from the first half of 2023’s $2,622m, contributing significantly to eroding profit margins. 

However, this was somewhat offset by the company’s Integrated Power business earning $1,113m in H1 2024, an increase of 36% from H1 2023. 

TotalEnergies also reiterated that in the third quarter of the year, it would be buying back up to $2bn worth of shares. 

On Thursday morning, TotalEnergies’ shares were trading at €60.54. 

Patrick Pouyanné, the chief executive officer (CEO) of TotalEnergies said in the earnings report, “During the first half of 2024, TotalEnergies has completed important steps in advancing the balanced transition strategy presented to shareholders at our Investor Day in September 2023. 

“Within the Oil and Gas pillar, TotalEnergies took final investment decisions on several upstream projects that