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TotalEnergies' (TTE) Q1 Earnings Top Estimates, Sales Up Y/Y

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TotalEnergies SE (TTE - Free Report) reported first-quarter 2022 operating earnings of $3.40 (€3.03) per share, beating the Zacks Consensus Estimate of $2.79 by 21.9%.

The bottom line also improved 209.1% from the year-ago figure of $1.10 (€0.91) per share. This year-over-year improvement was due to an increase in commodity prices.

Total Revenues

Total revenues for the first quarter came in at $68.6 billion, up 56.9% from $43.73 billion generated in the year-ago period.

Production

First-quarter hydrocarbon production averaged 2,843 thousand barrels of oil equivalent per day (kboe/d), down 0.7% year over year. This decline was due to price effect, the natural decline of fields, the end of Qatargas 1 operating license and the Utica asset sale.

For the reported quarter, liquids production averaged 1,527 thousand barrels per day, up 1% from the year-ago period.

Quarterly gas production was 7,162 thousand cubic feet per day, down 3% year over year due to lower gas output from all regions except Europe and Central Asia.

Realized Price

First-quarter realized price for Brent was up 67.3% to $102.2 per barrel from $61.1 in the year-ago period. The average realized liquid price was $90.1 per barrel, up 59.8% from the year-ago figure.

Realized gas prices improved 202.2% from the prior-year quarter to $12.27 per thousand British thermal units (Btu).

Realized LNG prices improved 123.7% from the prior-year quarter to $13.6 per thousand Btu.

Highlights of the Release

Operating income was $9,458 million, up 171.2% from the year-ago period due to higher commodity prices.

Interest expenses for the reported quarter were $462 million, down 0.9% from $466 million in the year-ago period.

In first-quarter 2022, TotalEnergies acquired $1,400 million worth of assets and sold assets valued at $478 million.

Segment Details

Exploration & Production’s operating earnings were $5,015 million, up 153.9% from $1,975 million in the year-ago period.

Integrated Gas, Renewable & Power’s operating income was $3,051 million, up 24.1% from $2458 million in the year-ago quarter.

Refining & Chemicals’ operating income was $1,120 million, up 360.9% from $243 million in the year-ago quarter.

Marketing & Services’ operating income was $272 million, down 4% from $284 million in first-quarter 2021.

Financial Update

Cash and cash equivalents as of Mar 31, 2022 were $31.3 billion compared with $21.3 billion as of Dec 31, 2021. Net debt to capital was 12.5% at the end of first-quarter 2022, down from 23.7% at the end of first-quarter 2021.

Cash flow from operating activities at first quarter-end was $7,621 million, up 36.1% year over year.

Guidance

TotalEnergies expects second-quarter production to improve from an increase in production from Brazil, with the startup of Mero 1 and its entry into Atapu and Sepia.

TTE expects average LNG prices to remain at a high level of $14 per thousand Btu in second-quarter 2022.

TotalEnergies expects to invest $15 billion in 2022, out of which 25% will be allocated to further strengthen renewable operation and electricity.

TotalEnergies expects the ongoing conflict between Russia and Ukraine to result in a loss of 2,000-3,000 barrels of oil production per day from Russia and lower production from Russian refineries.

Zacks Rank

Currently, TotalEnergies sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Releases

Ameresco, Inc. (AMRC - Free Report) is scheduled to release first-quarter 2022 results on May 2, after market close. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 28 cents per share.

Ameresco’s long-term (three to five years) earnings growth is currently pegged at 25.5%. The Zacks Consensus Estimate for AMRC’s 2022 earnings per share implies 25.8% year-over-year growth.

Texas Pacific Land Corporation (TPL - Free Report) is scheduled to release first-quarter 2022 results on May 4, after market close. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $13.82 per share.

Texas Pacific Land reported an average surprise of 6.8% in the past four quarters. The Zacks Consensus Estimate for TPL’s 2022 earnings per share indicates 78.6% year-over-year growth.

Evergy Inc. (EVRG - Free Report) is scheduled to release first-quarter 2022 results on May 5, before the opening bell. The Zacks Consensus Estimate for quarterly earnings is pegged at 55 cents per share.

Evergy’s long-term earnings growth is currently pegged at 6.08%. Evergy delivered an average surprise of 87.4% in the last four reported quarters.