TotalEnergies Earnings: Decline in Gas Prices Hits Earnings, but no Impact to Shareholder Returns

No-moat TotalEnergies' first-quarter adjusted net income fell to $5.1 billion from $6.5 billion in first-quarter 2023, largely due to lower gas prices and weaker refining margins. The decline in gas prices—the major European benchmark NBP is down 46% from a year ago—particularly weighed on integrated LNG results. Refining and chemical adjusted net income fell 41% year-over-year, largely due to weaker refining margins, which declined 21% from the prior year. Integrated power was a bright spot in the results as earnings increased 65% from a year ago as net capacity doubled. Oil and gas production decreased 2% from the year before to 2,461 thousand barrels of oil equivalent per day, excluding the impact of divested Canadian assets, production increased by 1.5% from the year before.