TotalE to order first of many FPSOs for Namibia

Total has been spending a lot of money they may not have budgeted for. Total wants to emulate XOM's successes offshore Guyana, but in Namibia's offshore oil basins. Total doesn't want to miss the boat offshore Namibia by playing it too safe and conservative. So, Total has to find the funding for big high cost plans for turning Namibia's offshore oil&gas assets into revenue and profits. The lead post points to a big FPSO investments similar to XOM's Guyana projects with up to 7 FPSOs and several drillships. Total will also need FEED contracts to develop supporting infrastructure. Saving money on drillship contracts is not going to get them where they want to go offshore Namibia.

How do they get the funds needed? A recent article points the way forward...

TotalEnergies Mulls Primary New York Listing to Expand U.S. Shareholder Base

By Julianne Geiger - Apr 26, 2024, 12:30 PM CDT
oilprice.com/Latest-Energy-News/World-News/TotalEnergies-Mulls-Primary-New-York-Listing-to-Expand-US-Shareholder-Base.html

Below, is an example of TotalE doing a deal to save money... due to the much higher drillship dayrates now and the even higher dayrates coming in the future. (Big oil budgeted some of these projects with dayrates 1/2 of what they are now.) No oil company wants to own drillships. It's not their area of expertise.

Here's the example...

TotalEnergies and Vantage Drilling International have signed a binding agreement to create a new joint venture (JV), with TotalEnergies acquiring the Tungsten Explorer drillship from Vantage. TotalEnergies will pay $199 million for a 75% interest, with Vantage owning the remaining 25%. Feb 7, 2024

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Here's another example...

TotalEnergies quarterly profit misses forecasts, warns on margins

By Forrest Crellin and Benjamin Mallet - February 7, 2024
www.reuters.com/markets/commodities/totalenergies-adjusted-net-income-down-31-q4-2024-02-07/

Company hopes Mozambique, Namibia projects online this year

PARIS, Feb 7 (Reuters) - TotalEnergies (TTEF.PA), opens new tab on Wednesday reported a bigger-than-expected decline in its adjusted income for the fourth quarter of 2023 and warned weak refining margins would impact its 2024 results.

Profits from oil majors have been down in 2023 by about a third from record levels in 2022, pressured as oil and gas prices retreated after spiking when Russia invaded Ukraine.

Shares in TotalEnergies were 3% lower in midday trading in Paris and were up 2.8% over the last 6 months.

The French group's net adjusted income dropped by 31% to $5.2 billion from $7.6 billion in the same quarter a year earlier. That compared with analysts' average forecast of $5.4 billion, according to LSEG data.

TotalEnergies' CEO Patrick Pouyanne said that the group expected a return of about 10% on its integrated power sector for 2024.

"A third of investments set aside for 2024 will be dedicated to new petrol and gas projects," Pouyanne told reporters.

Pouyanne said that the Rio Grande Project in the United States was unaffected by President Joe Biden's decision to pause pending approvals of exports from new LNG projects.

He expects the measures to be lifted, but said that the moratorium on certain U.S. LNG installations put future export licences in doubt.

The company hopes to develop its first project in Namibia and TotalEnergies will set aside a third of its budget for exploration projects in the country, he said.

Pouyanne also said that the company was "reactivating" the financing with its partners for a Mozambique project and was hopeful the project would return to production by mid-year. He said there was still engineering and construction to complete.

TotalEnergies followed peers with plans to return capital to shareholders. It plans to increase interim dividends by 6.8% to 0.79 euros per share and to buy back $2 billion of shares in the first quarter of 2024.

That would be the base level for quarterly buybacks "in the current environment", it said.

For 2023, TotalEnergies proposed a dividend of 3.01 euros per share, up 7.1% from 2022.

The oil and gas group recorded quarterly adjusted core earnings (EBITDA) of $11.7 billion, down 27% year-on-year, and production of 2.483 million barrels per day (bpd), down 12% year-on-year.

For the whole of 2023, adjusted net income fell 36% to $23.2 billion as oil prices fell back from the peaks hit in 2022 at the beginning of Russia's invasion of Ukraine.

It expects net investments of $17 billion to $18 billion for 2024, of which $5 billion will be dedicated to its integrated power section.

TotalEnergies SE Announces $2 Billion Buyback Amid Strong Q1 Earnings
Apr 26, 2024 2:59 PM - Gordon Thompson
site.financialmodelingprep.com/market-news/totalenergies-se-strategic-financial-moves-market-performance

TotalEnergies SE's Strategic Financial Moves and Market Performance

TotalEnergies SE, trading under the symbols NYSE:TOT and EPA:TTE, has recently made headlines with its announcement of a $2 billion buyback program, a strategic move that underscores the company's robust financial health and confidence in its future prospects. This decision comes on the back of a period where sustained oil prices have significantly bolstered the company's profits, demonstrating its ability to navigate through the volatile energy market. Despite facing a challenging environment, TotalEnergies' adjusted net income for the first quarter of the year impressively reached $5.1 billion. Although this represents a 22% decrease from the previous year, it still exceeded market expectations, which were pegged at $5 billion. This performance not only highlights the company's resilience amidst fluctuating oil prices but also its adeptness in maintaining a strong financial standing.

The announcement made on March 26th regarding TotalEnergies' financial results for the first quarter of 2024 has been a cause for celebration within the big oil firm. The company's positive earnings report is a testament to its operational success and financial health during the early part of 2024. According to Invezz, this turnaround in financial performance is a significant indicator of TotalEnergies' ongoing recovery and growth, positioning it well within the competitive landscape of the energy sector.

Reflecting on the company's stock performance, TotalEnergies SE (TTE) experienced a notable increase in its stock price by 1.261%, closing at $74.68. This uptick of $0.93 from its previous position not only signifies investor confidence in the company but also marks a new high for the year, showcasing a remarkable recovery from its previous low of $54.94. The stock's performance throughout the trading day, with fluctuations between a low of $74.38 and a peak of $74.97, further emphasizes the market's positive reception to TotalEnergies' financial strategies and operational achievements.

Moreover, the company's market capitalization, standing at approximately $173.73 billion, coupled with a trading volume of 753,315 shares, underscores the substantial scale and investor interest in TotalEnergies. This financial metric is crucial as it reflects the total market value of the company's outstanding shares, offering insights into its size, investor perception, and potential market impact. The significant market capitalization not only highlights TotalEnergies' dominance in the energy sector but also its resilience and adaptability in maintaining growth and profitability amidst market challenges.

In summary, TotalEnergies SE's strategic financial maneuvers, including the $2 billion buyback program and its impressive first-quarter earnings, have solidified its position in the energy market. Despite the challenges posed by fluctuating oil prices, the company has demonstrated remarkable financial health and operational success. The positive movement in its stock price and substantial market capitalization further attest to TotalEnergies' strong standing and investor confidence, marking a period of financial stability and growth for the big oil firm.