We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TOTAL (TOT) Beats Q4 Earnings Estimates; Issues '17 Outlook
Read MoreHide Full Article
Integrated oil and gas company, TOTAL S.A. reported fourth-quarter 2016 operating earnings of 96 cents per share (€0.89 per share), beating the Zacks Consensus Estimate of 92 cents by 4.3%.
The fourth-quarter operating earnings improved 9% from the year-ago tally of 88 cents per share (€0.80 per share).
Full-year operating earnings came in at $3.38 per share, down 25.0% from the 2015 tally of $4.51. However, reported earnings were higher than the Zacks Consensus Estimate of $3.36.
Total Revenue
Total revenue in the reported quarter came in at $42.27 billion, up 12% from $37.75 billion in the year-ago quarter. Reported revenues also surpassed the Zacks Consensus Estimate of $35.7 billion by 18.4%.
Full-year revenues were down by 9% from the prior-year figure of $165.36 billion to $149.75 billion. However, the top line surpassed the Zacks Consensus Estimate of $126.25 billion by 18.6%.
Production
Total hydrocarbon production during fourth-quarter 2016 averaged 2,462 thousand barrels of oil equivalent (kboe) per day, up 4.7% year over year. The increase was primarily driven by new project startups, partially offset by the natural field decline and maintenance operations.
In the fourth quarter, liquids production averaged 1,257 thousand barrels per day, on par with year-ago production.
Gas production during the quarter was 6,597 thousand cubic feet per day, up 10% year over year. Soft performance in Middle East & North Africa was more than neutralized by an increase in production in Africa, Europe & Central Asia and Americas.
TotalFinaElf, S.A. Price, Consensus and EPS Surprise
In fourth-quarter 2016, the realized price for Brent was up 12.6% to $49.30 per barrel from $43.80 in the year-ago quarter. The average realized liquid price improved 21% to $46.1 per barrel from the year-ago level of $38.1.
Realized gas prices decreased 12.6% year over year in fourth-quarter 2016 to $3.89 per one thousand Btu (Mbtu.)
Realized hydrocarbon prices gained 8% to $35.6 per barrels of oil equivalent (boe) from $33.1 in fourth-quarter 2015.
Sale & Purchase of Assets
In fourth-quarter 2016, TOTAL acquired assets worth $616 million, primarily comprising the acquisition of 75% interest in the Barnett shale gas field in the U.S.
However, the company sold assets worth $416 million during the same period, which included the sale of 15% interest in the Gina Krog field in Norway.
Financial Update
Cash and cash equivalents as of Dec 31, 2016 were $24.60 billion compared with $23.27 billion as of Dec 31, 2015.
The net debt-to-equity ratio was 27.1% at the end of fourth-quarter 2016, down from 28.3% at the end of fourth-quarter 2015.
2017 Guidance
TOTAL expects production from the upstream segment to improve by 4% year over year.
TOTAL continues to work on cost management initiatives and targets cost savings of $3.5 billion in 2017.
Peer Releases
Exxon Mobil Corp. (XOM - Free Report) reported fourth-quarter earnings of 90 cents, surpassing the Zacks Consensus Estimate of 72 cents by 25%.
BP plc (BP - Free Report) reported fourth-quarter earnings of 13 cents, lagging the Zacks Consensus Estimate of 16 cents by 18.8%.
Royal Dutch Shell reported fourth-quarter earnings of 44 cents, falling short of the Zacks Consensus Estimate of 72 cents by 38.9%.
Our View
TOTAL reported strong results for fourth-quarter 2016, wherein its earnings and revenues outpaced the Zacks Consensus Estimate. Amid ongoing volatility of the crude oil prices, the company remains committed towards cost savings initiatives. After savings of $2.8 billion in 2016, TOTAL aims to save $3.5 billion in costs in 2017.
Further, TOTAL expects to improve its top-line production by 4% in 2017, owing to its 10 startups lined up in the next 18 months.
Going forward, the company will continue to benefit from upstream startups and cost management initiatives. Strategic acquisitions and asset divestures will further strengthen its portfolio.
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
TOTAL (TOT) Beats Q4 Earnings Estimates; Issues '17 Outlook
Integrated oil and gas company, TOTAL S.A. reported fourth-quarter 2016 operating earnings of 96 cents per share (€0.89 per share), beating the Zacks Consensus Estimate of 92 cents by 4.3%.
The fourth-quarter operating earnings improved 9% from the year-ago tally of 88 cents per share (€0.80 per share).
Full-year operating earnings came in at $3.38 per share, down 25.0% from the 2015 tally of $4.51. However, reported earnings were higher than the Zacks Consensus Estimate of $3.36.
Total Revenue
Total revenue in the reported quarter came in at $42.27 billion, up 12% from $37.75 billion in the year-ago quarter. Reported revenues also surpassed the Zacks Consensus Estimate of $35.7 billion by 18.4%.
Full-year revenues were down by 9% from the prior-year figure of $165.36 billion to $149.75 billion. However, the top line surpassed the Zacks Consensus Estimate of $126.25 billion by 18.6%.
Production
Total hydrocarbon production during fourth-quarter 2016 averaged 2,462 thousand barrels of oil equivalent (kboe) per day, up 4.7% year over year. The increase was primarily driven by new project startups, partially offset by the natural field decline and maintenance operations.
In the fourth quarter, liquids production averaged 1,257 thousand barrels per day, on par with year-ago production.
Gas production during the quarter was 6,597 thousand cubic feet per day, up 10% year over year. Soft performance in Middle East & North Africa was more than neutralized by an increase in production in Africa, Europe & Central Asia and Americas.
TotalFinaElf, S.A. Price, Consensus and EPS Surprise
TotalFinaElf, S.A. Price, Consensus and EPS Surprise | TotalFinaElf, S.A. Quote
Realized Price
In fourth-quarter 2016, the realized price for Brent was up 12.6% to $49.30 per barrel from $43.80 in the year-ago quarter. The average realized liquid price improved 21% to $46.1 per barrel from the year-ago level of $38.1.
Realized gas prices decreased 12.6% year over year in fourth-quarter 2016 to $3.89 per one thousand Btu (Mbtu.)
Realized hydrocarbon prices gained 8% to $35.6 per barrels of oil equivalent (boe) from $33.1 in fourth-quarter 2015.
Sale & Purchase of Assets
In fourth-quarter 2016, TOTAL acquired assets worth $616 million, primarily comprising the acquisition of 75% interest in the Barnett shale gas field in the U.S.
However, the company sold assets worth $416 million during the same period, which included the sale of 15% interest in the Gina Krog field in Norway.
Financial Update
Cash and cash equivalents as of Dec 31, 2016 were $24.60 billion compared with $23.27 billion as of Dec 31, 2015.
The net debt-to-equity ratio was 27.1% at the end of fourth-quarter 2016, down from 28.3% at the end of fourth-quarter 2015.
2017 Guidance
TOTAL expects production from the upstream segment to improve by 4% year over year.
TOTAL continues to work on cost management initiatives and targets cost savings of $3.5 billion in 2017.
Peer Releases
Exxon Mobil Corp. (XOM - Free Report) reported fourth-quarter earnings of 90 cents, surpassing the Zacks Consensus Estimate of 72 cents by 25%.
BP plc (BP - Free Report) reported fourth-quarter earnings of 13 cents, lagging the Zacks Consensus Estimate of 16 cents by 18.8%.
Royal Dutch Shell reported fourth-quarter earnings of 44 cents, falling short of the Zacks Consensus Estimate of 72 cents by 38.9%.
Our View
TOTAL reported strong results for fourth-quarter 2016, wherein its earnings and revenues outpaced the Zacks Consensus Estimate. Amid ongoing volatility of the crude oil prices, the company remains committed towards cost savings initiatives. After savings of $2.8 billion in 2016, TOTAL aims to save $3.5 billion in costs in 2017.
Further, TOTAL expects to improve its top-line production by 4% in 2017, owing to its 10 startups lined up in the next 18 months.
Going forward, the company will continue to benefit from upstream startups and cost management initiatives. Strategic acquisitions and asset divestures will further strengthen its portfolio.
TOTAL currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>