TotalEnergies SE - ADR

**Strong Adjusted Net Income**: TotalEnergies reported an adjusted net income of $4.1 billion for Q3 2024 and a total of $13.9 billion for the first nine months of the year. The company's return on average capital employed stood at a robust 14.6%, indicating effective utilization of capital in a challenging environment.

**Refining Margin Challenges**: The European refining margin marker saw a sharp decline, dropping 66% quarter-over-quarter to below the breakeven level of $25 per ton. Despite this, TotalEnergies maintains a stance of not implementing economic run cuts, focusing instead on covering variable costs and assessing long-term strategy for their refining assets.

**LNG Market Outlook**: TotalEnergies anticipates average LNG selling prices around $10 per million BTU in Q4 2024, slightly up from $9.9 in Q3 2024. The company is also securing medium-term sales contracts to enhance cash flows, driven by a strengthened trading position. However, expectations of delayed LNG capacity growth could impact supply markets starting in 2026 or 2027, indicating potential volatility.