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TotalEnergies (TTE) Q3 Earnings & Revenues Beat Estimates

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TotalEnergies SE (TTE - Free Report) reported third-quarter 2023 operating earnings of $2.63 (€2.41) per share, beating the Zacks Consensus Estimate of $2.5 by 5.2%.

The bottom line declined 31.3% from the year-ago figure of $3.83 (€3.78). The year-over-year decline was due to a correction in commodity prices.

Total Revenues

Total revenues for the third quarter were $59.1 billion, down 14.5% from $69.1 billion generated in the prior-year period. However, revenues surpassed the Zacks Consensus Estimate of $41.8 billion by 41.4%.

TotalEnergies SE Sponsored ADR Price, Consensus and EPS Surprise

 

TotalEnergies SE Sponsored ADR Price, Consensus and EPS Surprise

TotalEnergies SE Sponsored ADR price-consensus-eps-surprise-chart | TotalEnergies SE Sponsored ADR Quote

Production

In the third quarter, hydrocarbon production averaged 2,476 thousand barrels of oil equivalent per day, down 7% year over year (including Novatek). The decline was due to the natural decline in fields, marginally offset by startup contributions and improved security conditions in Nigeria and Libya.

For the reported quarter, liquids production averaged 1,561 thousand barrels per day, up 4% from the year-ago period.

Quarterly gas production was 4,921 thousand cubic feet per day, down 23% year over year due to lower gas output from the Europe and Americas.

Realized Price

The third quarter’s realized price for Brent was down 14% to $86.7 per barrel from $100.8 in the year-earlier period. The average realized liquid price was $78.9 per barrel, down 16% from the previous-year figure.

Realized gas prices were down 67% from the prior-year quarter to $5.47 per thousand British thermal units (Btu).

Realized LNG prices were down 56% from the year-earlier quarter to $9.56 per thousand Btu.

Highlights of the Release

TotalEnergies continued with its multi-energy strategy during the third quarter and announced partnership with Petrobras and Casa dos Ventos in renewable energies in Brazil.

Net operating income was $6,808 million, down 34% from the year-ago period due to lower commodity prices.

Interest expenses were $726 million, up 15% from $633 million in the prior-year period.

In third-quarter 2023, TotalEnergies acquired assets worth $1,992 million and sold assets worth $1,184 million.

It repurchased 98.9 million shares in the first nine months of 2023 for $6.1 billion, of which 33.9 million shares were repurchased in third-quarter 2023.

Segmental Details

Exploration & Production’s operating earnings were $3,138 million, down 26% from $4,217 million in the year-ago period.

Integrated LNG’s operating income of $1,342 million tumbled 61% from $3,413 million in the year-earlier quarter.

Integrated Power’s operating income of $506 million rose 114.4% from $236 million in the year-ago quarter.

Refining & Chemicals’ operating income of $1,339 million plunged 28% from $1,935 million in the prior-year quarter.

Marketing & Services’ operating income of $423 million dipped 12% from $478 million in third-quarter 2022.

Financial Update

Cash and cash equivalents as of Sep 30, 2023, were $24.7 billion compared with $35.9 billion as of Sep 30, 2022. Net debt to capital was 17.4% at the end of third-quarter 2023 compared with 9.5% at third-quarter 2022-end.

Cash flow from operating activities at third-quarter end was $9,500 million, down 47% from the year-ago period.

Guidance

TotalEnergies expects fourth-quarter 2023 hydrocarbon production to be between 2.4 and 2.5 Mboe/d, which will impact the sales of TTE’s oil sand assets in Canada.

It anticipates investing in the range of $16 to $17 billion in 2023, of which a substantial amount will be allocated to expand its renewable asset portfolio.

Zacks Rank

TotalEnergies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Exxon Mobil Corporation (XOM - Free Report) is scheduled to release third-quarter 2023 earnings on Oct 27. The Zacks Consensus Estimate for quarterly earnings is pegged at $2.36 per share, suggesting a decline of 46.7% from the year-ago reported figure.

The Zacks Consensus Estimate for Exxon Mobil’s 2023 EPS of $9.37 implies an increase of 4.6% in the last 60 days. XOM’s long-term (three- to five-year) earnings growth is anticipated to be 3%.

Chevron Corporation (CVX - Free Report) is slated to release third-quarter 2023 earnings on Oct 27. The Zacks Consensus Estimate for quarterly earnings is pegged at $3.68 per share.

The Zacks Consensus Estimate for Chevron’s 2023 EPS of $14.06 indicates an increase of 6.6% in the last 60 days. CVX’s long-term earnings growth is projected to be 13.77%.

ConocoPhillips (COP - Free Report) will report third-quarter 2023 earnings on Nov 2. The Zacks Consensus Estimate of $1.97 per share for quarterly earnings suggests a decrease of 49.6% from the year-ago reported figure.

The Zacks Consensus Estimate for COP’s 2023 EPS of $8.89 implies an increase of 0.6% in the last 60 days.

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