TotalEnergies

Note: This is a daily stock update and the information stands true as of 05/02/25, 09:00 CET.

Company update:
Q4 2024 adjusted net income of $4.4bn beat consensus by 4.9%, driven by a 10% beat in LNG on strong trading performance and a 20% beat in Marketing & Services due to resilient fuel demand. E&P was in line
Shareholder returns remain strong with a 7% dividend increase (EUR3.22/share) and USD8bn in buybacks planned for 2025.
 
Guidance 25 : hydrocarbon production to grow by at least 3%.  Total energy production (incl electricity output), set to rise 5% Net investment is projected at $17-17.5B, slightly below $17.8B in 2024, with $4.5B allocated for low-carbon projects.
 
Expert opinion:
These results are quite positive, better than expected and the increased dividend demonstrates confidence in the cash flow generation. Short term, we are afraid that oil may decrease , taking oil producers lower. However, for a long term investor, Total is a must have stock. Main problem with oil is that we will eventually run out of it. With a PE below 8x  and a dividend yield around 6%, the valuation remains attractive.
 
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