TotalEnergies SE (NYSE:TTE) Q3 2024 Earnings Conference Call October 31, 2024 7:00 AM ET
Company Participants
Patrick Pouyanné – Chairman and Chief Executive Officer
Jean-Pierre Sbraire – Chief Financial Officer
Conference Call Participants
Lydia Rainforth – Barclays
Michele Della Vigna – Goldman Sachs
Matt Lofting – JPMorgan
Irene Himona – Bernstein
Christopher Kuplent – Bank of America
Martijn Rats – Morgan Stanley
Doug Leggate – Wolfe Research
Lucas Herrmann – BNP
Kim Fustier – HSBC
Henri Patricot – UBS
Paul Cheng – Scotiabank
Henry Tarr – Berenberg
Jason Gabelman – TD Cowen
Operator
Ladies and gentlemen, welcome to the TotalEnergies Third Quarter 2024 Results Conference Call. I now hand over to Patrick Pouyanné, Chairman and CEO; and Jean-Pierre Sbraire, CFO, who will lead you through this call. Sir, please go ahead.
Patrick Pouyanné
Good morning, good afternoon everyone. Patrick Pouyanné here together with Jean-Pierre. Nice to be with you again after seeing you, many of you in-person at our Investor Day in New York earlier this month. I just spent the last three weeks in road shows. I would like just to share with you that we got the constructive feedback from the investors on balanced strategy and the level of understanding of our growth profile on both pillars, oil and gas, with the quality and depth of our upstream portfolio on one side, but also on the other side, the integrated power is now, I would say, better understood on both sides of the Atlantic.
As discussed at the Investor Day, the clarity, consistency of our strategy must remain our priority. Discipline on cost, keeping a low breakeven portfolio and a strong balance sheet supporting attractive shareholder returns are fundamental principles, which allow the company to be resilient for the cycles, especially when we are entering into an increasingly volatile and certain environment like what we have seen during this third quarter. I will not be longer and I will hand over to Jean-Pierre to discuss the details of the three quarter financials, which I think are proving also the resiliency of our integrated model in a challenging environment for both oil and refining margins. And then we'll be happy to answer to your question during the Q&A.
Jean-Pierre Sbraire
Thank you, Patrick, and good morning, good afternoon everyone. This quarter we faced a more challenging environment with refining margins sharply deteriorated with the European refining margin marker down by 66% quarter-to-quarter lower than our breakeven at $25 per ton. Regarding the upstream environment, Brent decreased by 5% quarter-to-quarter to average $80 per barrel, while the company average LNG price decreased by 6%. In this context, the company reported adjusted net income of $4.1 billion on the quarter and of $13.9 billion over the first nine months of the year. Profitability remained robust with return on average capital employed for the 12 months ending – end of September at 14.6%.