What drove TTE's earnings beat in the past year?

TotalEnergies SE (TTE) has seen a significant surge in its net income, as evidenced by the 113% growth in profit for its downstream operations, TotalEnergies Marketing Nigeria Plc, for the financial year ending December 31, 2024. This impressive growth can be attributed to several key factors: 1. **Petrol Product Price Adjustment**: The adjustment in petrol product prices in Nigeria has been a significant factor in TotalEnergies' profit surge. This adjustment has allowed the company to capitalize on high inflation, resulting in a substantial increase in revenue and profit. 2. **Revenue Surge**: TotalEnergies has reported a 64% surge in revenue, reaching N1.04 trillion for the year 2024, up from N635.951 billion in 2023. This significant increase in revenue has contributed to the company's profit growth. 3. **Growth in Other Income**: The "Other Income" segment of TotalEnergies has experienced a massive surge, growing to N30.8 billion, a 610.87% increase from the previous year. This significant increase is largely due to a N25 billion write-back of accruals, which has had a direct impact on the company's profit margin. 4. **Dividend Payment**: The company's board has proposed a dividend payment of N13.6 billion to shareholders for the 2024 financial year, translating to N40 per share. This marks a 60% increase from the N25 per share dividend paid in 2023, reflecting the company's confidence in its earnings and its ability to sustain and grow its dividend payments. In summary, TotalEnergies' earnings beat can be attributed to a combination of factors including petrol product price adjustment, revenue surge, growth in other income and dividend payment. These factors, either directly or indirectly, have contributed to the company's robust financial performance and its ability to generate higher profits.