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TOTAL's (TOT) Q4 Earnings Miss Estimates, Revenues Up Y/Y
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TOTAL S.A. reported fourth-quarter 2018 operating earnings of $1.17 per share (€1.02 per share), lagging the Zacks Consensus Estimate of $1.22 by 4.1%.
However, the bottom line improved 6% from the year-ago figure of $1.04 (€0.94 per share). This upswing is due to rising oil prices and solid production.
Total Revenues
Total revenues came in at $46.3 billion, up 11.8% from $41.4 billion generated in the year-ago quarter.
Total hydrocarbon production during the fourth quarter averaged 2,876 thousand barrels of oil equivalent per day, up 10% year over year. The increase was due to higher contribution from Kashagan, Fort Hills, Ichthys, and Yamal LNG, along with the integration of Maersk Oil, partially offset by natural field decline and PSC price effect.
In the reported quarter, liquids production averaged 1,589 thousand barrels per day, increasing 14% from the year-ago period.
Gas production during the quarter was 6,994 thousand cubic feet per day, up 2% year over year. Increased production in Africa, Europe as well as Middle East was partially offset by soft production from the Asia-Pacific region, and Americas.
Realized Price
In the fourth quarter, realized price for Brent was up 44% to $68.8 per barrel from $61.3 in the year-ago period. Average realized liquid price decreased 1% to $57.2 per barrel from the year-ago level of $57.6.
Realized gas prices improved 17% from the prior-year quarter to $4.94 per thousand Btu.
Realized hydrocarbon prices increased 8% to $46.9 per barrel of oil equivalent from $43.3 in fourth-quarter 2017.
Highlights of the Release
Operating income was $3,885 million, up 16% from the year-ago period. Higher contribution from Exploration & Production, and Refining & Chemicals segments boosted its operating income.
Adjusted net income in the reported quarter was $3,164 million, up 10% from the year-ago level.
Interest expenses in the reported quarter were $529 million compared with $352 million in the year-ago period.
Segment Details
Exploration & Production’s operating income was $2,476 million compared with $1,805 million in fourth-quarter 2017. The year-over-year increase was due to production growth and an increase in average realized hydrocarbon price.
Gas, Renewable & Power’s operating income was $176 million compared with $232 million in fourth-quarter 2017.
Refining & Chemicals’ operating income was $900 million compared with $886 million in the year-ago quarter.
Marketing & Services’ operating income was $333 million compared with $436 million in fourth-quarter 2017. Sale & Purchase of Assets
In 2018, TOTAL acquired assets worth $8,314 million, primarily comprising the acquisition of interests in deep-water offshore fields in Lara and Lapa in Brazil, two new 40-year concessions in offshore Abu Dhabi, offshore assets from Cobalt in the Gulf of Mexico and Engie’s LNG business, Direct Energie.
During the year, the company sold assets worth $5,172 million, primarily comprising the sale of Martin Linge field in Norway, an interest in the Fort Hills project in Canada, a stake in marketing activities in Italy, SunPower’s sale of its interest in 8point3, Joslyn in Canada and Rabi in Gabon.
Financial Update
Cash and cash equivalents as of Dec 31, 2018 were $27.9 billion compared with $33.18 billion recorded in the corresponding period of 2017. Net debt-to-capital ratio was 15.5% at the end of the quarter, up from 11.9% at the end of fourth-quarter 2017.
The company intends to buy back shares worth $1.5 billion in 2019, after repurchasing $1.5 billion shares in 2018. TOTAL has plans to repurchase shares worth $5 billion over the 2018-2020 time frame.
2019 Guidance
TOTAL’s 2019 upstream production is expected to increase 9% from a year ago. It expects that the startup of lara 1 in Brazil, Kaombo South In Angola, Culzean in the UK, and the ramp up of Kaombo North Egina in Nigeria and Ichthys LNG in Australia will continue to boost production.
It aims to invest in the range of $15-$16 billion in 2019 and is targeting a cost reduction of $4.7 billion.
Zacks Rank
Currently, TOTAL carries a Zacks Rank #5 (Strong Sell).
Exxon Mobil Corporation (XOM - Free Report) reported earnings of $1.51 per share in the fourth quarter, beating the Zacks Consensus Estimate by 39.8%.
Chevron Corporation (CVX - Free Report) reported earnings of $2.06 per share in the fourth quarter, beating the Zacks Consensus Estimate by 39.8%.
BP plc (BP - Free Report) reported earnings of $1.04 per share in the fourth quarter, beating the Zacks Consensus Estimate by 33.3%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
TOTAL's (TOT) Q4 Earnings Miss Estimates, Revenues Up Y/Y
TOTAL S.A. reported fourth-quarter 2018 operating earnings of $1.17 per share (€1.02 per share), lagging the Zacks Consensus Estimate of $1.22 by 4.1%.
However, the bottom line improved 6% from the year-ago figure of $1.04 (€0.94 per share). This upswing is due to rising oil prices and solid production.
Total Revenues
Total revenues came in at $46.3 billion, up 11.8% from $41.4 billion generated in the year-ago quarter.
TOTAL S.A. Price, Consensus and EPS Surprise
TOTAL S.A. Price, Consensus and EPS Surprise | TOTAL S.A. Quote
Production Up
Total hydrocarbon production during the fourth quarter averaged 2,876 thousand barrels of oil equivalent per day, up 10% year over year. The increase was due to higher contribution from Kashagan, Fort Hills, Ichthys, and Yamal LNG, along with the integration of Maersk Oil, partially offset by natural field decline and PSC price effect.
In the reported quarter, liquids production averaged 1,589 thousand barrels per day, increasing 14% from the year-ago period.
Gas production during the quarter was 6,994 thousand cubic feet per day, up 2% year over year. Increased production in Africa, Europe as well as Middle East was partially offset by soft production from the Asia-Pacific region, and Americas.
Realized Price
In the fourth quarter, realized price for Brent was up 44% to $68.8 per barrel from $61.3 in the year-ago period. Average realized liquid price decreased 1% to $57.2 per barrel from the year-ago level of $57.6.
Realized gas prices improved 17% from the prior-year quarter to $4.94 per thousand Btu.
Realized hydrocarbon prices increased 8% to $46.9 per barrel of oil equivalent from $43.3 in fourth-quarter 2017.
Highlights of the Release
Operating income was $3,885 million, up 16% from the year-ago period. Higher contribution from Exploration & Production, and Refining & Chemicals segments boosted its operating income.
Adjusted net income in the reported quarter was $3,164 million, up 10% from the year-ago level.
Interest expenses in the reported quarter were $529 million compared with $352 million in the year-ago period.
Segment Details
Exploration & Production’s operating income was $2,476 million compared with $1,805 million in fourth-quarter 2017. The year-over-year increase was due to production growth and an increase in average realized hydrocarbon price.
Gas, Renewable & Power’s operating income was $176 million compared with $232 million in fourth-quarter 2017.
Refining & Chemicals’ operating income was $900 million compared with $886 million in the year-ago quarter.
Marketing & Services’ operating income was $333 million compared with $436 million in fourth-quarter 2017.
Sale & Purchase of Assets
In 2018, TOTAL acquired assets worth $8,314 million, primarily comprising the acquisition of interests in deep-water offshore fields in Lara and Lapa in Brazil, two new 40-year concessions in offshore Abu Dhabi, offshore assets from Cobalt in the Gulf of Mexico and Engie’s LNG business, Direct Energie.
During the year, the company sold assets worth $5,172 million, primarily comprising the sale of Martin Linge field in Norway, an interest in the Fort Hills project in Canada, a stake in marketing activities in Italy, SunPower’s sale of its interest in 8point3, Joslyn in Canada and Rabi in Gabon.
Financial Update
Cash and cash equivalents as of Dec 31, 2018 were $27.9 billion compared with $33.18 billion recorded in the corresponding period of 2017. Net debt-to-capital ratio was 15.5% at the end of the quarter, up from 11.9% at the end of fourth-quarter 2017.
The company intends to buy back shares worth $1.5 billion in 2019, after repurchasing $1.5 billion shares in 2018. TOTAL has plans to repurchase shares worth $5 billion over the 2018-2020 time frame.
2019 Guidance
TOTAL’s 2019 upstream production is expected to increase 9% from a year ago. It expects that the startup of lara 1 in Brazil, Kaombo South In Angola, Culzean in the UK, and the ramp up of Kaombo North Egina in Nigeria and Ichthys LNG in Australia will continue to boost production.
It aims to invest in the range of $15-$16 billion in 2019 and is targeting a cost reduction of $4.7 billion.
Zacks Rank
Currently, TOTAL carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
Exxon Mobil Corporation (XOM - Free Report) reported earnings of $1.51 per share in the fourth quarter, beating the Zacks Consensus Estimate by 39.8%.
Chevron Corporation (CVX - Free Report) reported earnings of $2.06 per share in the fourth quarter, beating the Zacks Consensus Estimate by 39.8%.
BP plc (BP - Free Report) reported earnings of $1.04 per share in the fourth quarter, beating the Zacks Consensus Estimate by 33.3%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>