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An Update from LNGPrime.com rolled across our feed, and I added the TotalEnergies Q1 summary and why this is a good thing for investors. The update from LNGPrime.com is below.
TotalEnergies Q1 2025 Quarterly Report Summary
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Financials:
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Adjusted Net Income: $4.2 billion, down from $5.1 billion in Q1 2024, due to lower oil prices and weaker downstream performance. Slightly missed analyst estimates of $4.2 billion.
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Cash Flow from Operations: $7.0 billion, supporting dividends and buybacks.
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Revenue: Fell to $47.89 billion from $51.88 billion in Q1 2024.
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EPS: Adjusted diluted net EPS at $1.83, down from $1.90 in Q4 2024.
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Tax Rate: Stable at 41.4% vs. 41.3% in Q4 2024.
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Operations:
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Upstream Production: Over 2.55 Mboe/d, up 4% year-on-year, driven by projects in Brazil, U.S., Malaysia, Argentina, and Denmark.
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Integrated Power: $500 million adjusted net income, $600 million cash flow, boosted by VSB acquisition (Germany) and Kyon’s battery storage.
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LNG: $1.3 billion adjusted net income, though gas trading was hit by volatile European markets.
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Downstream: $0.5 billion adjusted net income, $1.1 billion cash flow, weakened by low refining margins and issues at Donges and Port Arthur.
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Emissions: Scope 1+2 emissions down 13% quarter-on-quarter; Scope 3 estimated at 84 Mt CO2e.
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Strategic Moves:
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Debt rose to $20.1 billion from $10.9 billion in Q4 2024 due to seasonal needs, expected to normalize.
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Maintained $2 billion quarterly share buybacks and a 7% dividend increase.
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Invested $100 million in U.S. carbon credit projects, targeting 50 million credits by 2030.
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Challenges:
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Weak refining, petrochemical, and biofuel margins in Europe.
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LNG trading struggled with low volatility; U.S. solar project delayed due to tariffs.
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Outlook:
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Expects 3% annual upstream growth to 2030, 157% reserve replacement, and >50 TWh electricity production in 2025.
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Cash flow projection: >$29 billion at $70/bbl, with $17–17.5 billion capex.
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Why Expanding into Malaysia is Good for Investors
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Enhanced Gas Assets:
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Acquired 50% of SapuraOMV in 2024 for $903 million, gaining 40% of Block SK408 and 30% of Block SK310 (Sarawak). These produced 500 Mcf/d gas and 7 kb/d condensates in 2023, feeding Petronas’ Bintulu LNG plant.
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In June 2025, doubled its stake in offshore blocks from Petronas, covering >100,000 km², strengthening its gas portfolio.
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Low-Cost, Low-Emission Operations:
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SapuraOMV assets have low production costs and GHG intensity, aligning with TotalEnergies’ sustainable, high-margin strategy, appealing to ESG-focused investors.
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Petronas Partnership:
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Collaboration with Petronas ensures operational stability, local expertise, and access to Malaysia’s energy infrastructure, reducing risks and fostering growth.
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LNG Market Strength:
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Malaysia is a major LNG hub, and TotalEnergies’ expanded role positions it to meet Asia’s growing gas demand, ensuring stable revenue amid oil price volatility.
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Revenue and Cash Flow Potential:
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Gas projects like SK408 are ramping up, contributing to Q1 2025’s production growth. This supports long-term cash flow, dividends, and buybacks, enhancing shareholder value.
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Update from LNGPrime.com
Under the deal, TotalEnergies will hold, alongside Petronas through its wholly-owned subsidiary Petronas Carigali, a 50 percent operated working interest in Blocks SK301b and SK313, where significant gas discoveries (more than 4 Tcf) were made.
TotalEnergies said these discoveries are expected to be developed to support gas supply to Malaysia LNG from 2030.
Malaysia LNG, a unit of Petronas, operates the giant Bintulu LNG export plant with a capacity of about 29.3 mtpa.
TotalEnergies will also hold, alongside Petronas, interests in several exploration blocks offshore Malaysia.
In addition, the firms signed an agreement wherby TotalEnergies will acquire a 24.5 percent interest from Petronas in the Bobara block, offshore Indonesia, to carry out an exploration work program targeting oil prospects.
After completion, TotalEnergies will hold 24.5% working interest in the PSC, while Petronas will retain the remainder of the working interest and operatorship in the block.
TotalEnergies said the transaction remains subject to customary conditions, including regulatory approvals.
Following the SapuraOMV’s acquisition in December 2024, this transaction strengthens TotalEnergies’ position in South-East Asia with Malaysia as an anchor point, in partnership with Petronas.
“TotalEnergies has established itself as a significant gas producer in Malaysia. We are pleased to further expand our presence in the country, which we see as a strategic platform for our future low-cost, low-carbon production and cash-flow growth, underpinned by the exposure to Asian LNG market,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.
“TotalEnergies and Petronas’ strategic collaboration, which extends well beyond Malaysia through our multiple joint ventures worldwide, enables us to access a large and diverse portfolio in the country, spanning from exploration to production,” he said.
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The post TotalEnergies expands in Malaysia with Petronas deal appeared first on Energy News Beat.
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