TotalEnergies Earnings: Weak LNG and Downstream Results Don’t Affect Long-Term Outlook

No-moat TotalEnergies' second-quarter adjusted net income fell to $4.7 billion from $5.0 billion in second-quarter 2023, largely due to lower integrated LNG and weaker refining and chemical results that offset the benefit of higher oil prices. Results fell short of market expectations. Lower LNG prices and weaker trading results given the lack of volatility compared with 2023 hurt the integrated LNG segment, causing adjusted operating income to fall 13%. Meanwhile, refining and chemical adjusted operating income fell 36% year over year, contributing the largest element of earnings declines from a year ago. Integrated power delivered another positive quarter with adjusted operating earnings growing 12% on higher activity. Oil and gas production decreased 1% from the year before to 2,441 thousand barrels of oil equivalent per day, excluding the impact of divested Canadian assets, production increased by 3% from the year before.