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TOTAL (TOT) Tops Q1 Earnings Estimates, Cuts '20 Output View
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TOTAL S.A. reported first-quarter 2020 operating earnings of 66 cents (€0.60) per share, beating the Zacks Consensus Estimate of 55 cents by 20%.
However, the bottom line declined 35.3% from the year-ago figure of $1.02 (€0.90) per share. This year-over-year decline was due to substantial fall in commodity prices from the previous year.
Total Revenues
Total revenues came in at $43.87 billion, down 14.3% from $51.2 billion generated in the year-ago quarter.
Total hydrocarbon production during the first quarter averaged 3,086 thousand barrels of oil equivalent per day (kboe/d), up 5% year over year. The increase was due to higher contribution from Egina in Nigeria, Ichthys in Australia, Culzean in the United Kingdom, and Johan Sverdrup in Norway.
In the reported quarter, liquids production averaged 1,699 thousand barrels per day, increasing 4% from the year-ago period.
Gas production during the quarter was 7,560 thousand cubic feet per day, up 5% year over year. Increased production in Asia Pacific, Europe and Central Asia was partially offset by soft output from Africa and Americas regions.
Realized Price
In the first quarter, realized price for Brent was down 21% to $50.1 per barrel from $63.1 in the year-ago period. The average realized liquid price was $44.4 per barrel, down 24% from the year-ago figure.
Realized gas prices decreased 26% from the prior-year quarter to $3.35 per thousand British thermal units.
A substantial decline in hydrocarbon prices did not allow the company to enjoy the full benefits of increase in total production.
Highlights of the Release
Operating income was $2,300 million, down 33% from the year-ago period. Lower contribution from Refining & Chemicals, and Exploration & Production was marginally offset by higher contribution from the Integrated Gas, Renewable & Power segment.
Interest expenses in the reported quarter were $569 million, up 1.4% from $561 million in the year-ago period.
In the first quarter, TOTAL acquired $1.6 billion worth of assets and sold assets valued at $542 million.
Segment Details
Exploration & Production’s operating income was $703 million, down 59% from $1,722 million in first-quarter 2019.
Integrated Gas, Renewable & Power’s operating income was $913 million, up 54% from $794 million in the year-ago quarter.
Refining & Chemicals’ operating income was $382 million, down 49% from $580 million in the year-ago quarter.
Marketing & Services’ operating income was $302 million, down 12% from $343 million in first-quarter 2019.
Financial Update
Cash and cash equivalents as of Mar 31, 2020 were $21.7 billion compared with $27.4 billion at the end of 2019. Net debt to capital was 25% at the end of the quarter, up from 20.7% at 2019-end.
Due to nearly 30% drop in commodity prices in the first quarter, cash flow of the company decreased roughly 31% year over year to $4.5 billion.
TOTAL has a $5-billion buyback program for the 2018-2020 time frame. At the beginning of the first quarter, the company bought back 12.2 million shares at $550 million. It then suspended buybacks due to a sudden drop in oil prices caused by the outbreak of novel coronavirus.
2020 Guidance
TOTAL now expects 2020 production in the range of 295,000-300,000 barrels of oil equivalent per day, down 5% from the previous expectation, taking into consideration voluntary reductions in Canada volumes, the exceptional quota announced by OPEC+, lower demand for oil and gas, as well as the present situation in Libya.
Given the unprecedented drop in oil prices and demand for commodities globally, the company decided to preserve liquidity by cutting down planned capital expenditure for 2020 by at least 25%. TOTAL now aims to invest $14 billion in 2020.
Zacks Rank
Currently, TOTAL carries a Zacks Rank #5 (Strong Sell).
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $1.29, surpassing the Zacks Consensus Estimate of 64 cents by 101.6%.
Exxon Mobil Corporation (XOM - Free Report) reported first-quarter earnings per share of 53 cents, which surpassed the Zacks Consensus Estimate of 4 cents by a whopping 1,225%.
BP plc (BP - Free Report) reported first-quarter adjusted earnings of 24 cents that missed the Zacks Consensus Estimate of 28 cents by 14.3%
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TOTAL (TOT) Tops Q1 Earnings Estimates, Cuts '20 Output View
TOTAL S.A. reported first-quarter 2020 operating earnings of 66 cents (€0.60) per share, beating the Zacks Consensus Estimate of 55 cents by 20%.
However, the bottom line declined 35.3% from the year-ago figure of $1.02 (€0.90) per share. This year-over-year decline was due to substantial fall in commodity prices from the previous year.
Total Revenues
Total revenues came in at $43.87 billion, down 14.3% from $51.2 billion generated in the year-ago quarter.
TOTAL S.A. Price, Consensus and EPS Surprise
TOTAL S.A. price-consensus-eps-surprise-chart | TOTAL S.A. Quote
Production
Total hydrocarbon production during the first quarter averaged 3,086 thousand barrels of oil equivalent per day (kboe/d), up 5% year over year. The increase was due to higher contribution from Egina in Nigeria, Ichthys in Australia, Culzean in the United Kingdom, and Johan Sverdrup in Norway.
In the reported quarter, liquids production averaged 1,699 thousand barrels per day, increasing 4% from the year-ago period.
Gas production during the quarter was 7,560 thousand cubic feet per day, up 5% year over year. Increased production in Asia Pacific, Europe and Central Asia was partially offset by soft output from Africa and Americas regions.
Realized Price
In the first quarter, realized price for Brent was down 21% to $50.1 per barrel from $63.1 in the year-ago period. The average realized liquid price was $44.4 per barrel, down 24% from the year-ago figure.
Realized gas prices decreased 26% from the prior-year quarter to $3.35 per thousand British thermal units.
A substantial decline in hydrocarbon prices did not allow the company to enjoy the full benefits of increase in total production.
Highlights of the Release
Operating income was $2,300 million, down 33% from the year-ago period. Lower contribution from Refining & Chemicals, and Exploration & Production was marginally offset by higher contribution from the Integrated Gas, Renewable & Power segment.
Interest expenses in the reported quarter were $569 million, up 1.4% from $561 million in the year-ago period.
In the first quarter, TOTAL acquired $1.6 billion worth of assets and sold assets valued at $542 million.
Segment Details
Exploration & Production’s operating income was $703 million, down 59% from $1,722 million in first-quarter 2019.
Integrated Gas, Renewable & Power’s operating income was $913 million, up 54% from $794 million in the year-ago quarter.
Refining & Chemicals’ operating income was $382 million, down 49% from $580 million in the year-ago quarter.
Marketing & Services’ operating income was $302 million, down 12% from $343 million in first-quarter 2019.
Financial Update
Cash and cash equivalents as of Mar 31, 2020 were $21.7 billion compared with $27.4 billion at the end of 2019. Net debt to capital was 25% at the end of the quarter, up from 20.7% at 2019-end.
Due to nearly 30% drop in commodity prices in the first quarter, cash flow of the company decreased roughly 31% year over year to $4.5 billion.
TOTAL has a $5-billion buyback program for the 2018-2020 time frame. At the beginning of the first quarter, the company bought back 12.2 million shares at $550 million. It then suspended buybacks due to a sudden drop in oil prices caused by the outbreak of novel coronavirus.
2020 Guidance
TOTAL now expects 2020 production in the range of 295,000-300,000 barrels of oil equivalent per day, down 5% from the previous expectation, taking into consideration voluntary reductions in Canada volumes, the exceptional quota announced by OPEC+, lower demand for oil and gas, as well as the present situation in Libya.
Given the unprecedented drop in oil prices and demand for commodities globally, the company decided to preserve liquidity by cutting down planned capital expenditure for 2020 by at least 25%. TOTAL now aims to invest $14 billion in 2020.
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
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $1.29, surpassing the Zacks Consensus Estimate of 64 cents by 101.6%.
Exxon Mobil Corporation (XOM - Free Report) reported first-quarter earnings per share of 53 cents, which surpassed the Zacks Consensus Estimate of 4 cents by a whopping 1,225%.
BP plc (BP - Free Report) reported first-quarter adjusted earnings of 24 cents that missed the Zacks Consensus Estimate of 28 cents by 14.3%
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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