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TotalEnergies Q3 Earnings Miss Estimates, Revenues Down Y/Y
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TotalEnergies Q3 Earnings Miss Estimates, Revenues Down Y/Y
TotalEnergies SE TTE reported third-quarter 2024 operating earnings of $1.74 (€1.58) per share, which missed the Zacks Consensus Estimate of $1.84 by 5.4%. The bottom line declined 33.8% from the year-ago figure of $2.63 (€2.41). The year-over-year drop was due to lower refining margins and a decrease in oil prices.
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TTE’s Total Revenues
Total revenues for the third quarter were $47.43 billion, which lagged the year-ago reported revenues of $54.41 billion by 12.8%.
TotalEnergies SE Sponsored ADR Price, Consensus and EPS Surprise
TotalEnergies SE Sponsored ADR price-consensus-eps-surprise-chart | TotalEnergies SE Sponsored ADR Quote
TTE’s Production
In the third quarter, hydrocarbon production averaged 2,409 thousand barrels of oil equivalent per day, down 2.7% year over year. The year-over-year decline was due to security-related production disruptions in Libya and a natural gas decline, offset marginally by the higher availability of production facilities and contributions from startups and ramp-ups. The hydrocarbon production volumes were near the lower end of the guidance range of 2,400-2,450 thousand barrels of oil equivalent per day.
In the reported quarter, liquid production averaged 1,466 thousand barrels per day, down 6.1% year over year.
Quarterly gas production was 5,093 thousand cubic feet per day, up 3.5% year over year. This can be attributed to higher gas output from all regions across the globe where TotalEnergies has natural gas operations.
Realized Price
The quarterly realized price for Brent was down 7.4% to $80.3 per barrel from $86.7 in the year-earlier period. The average realized liquid price was $77 per barrel, down 2.4% year over year.
Realized gas prices were up 5.7% year over year to $5.78 per thousand British thermal units (Btu).
Realized LNG prices were up 3.7% year over year to $9.91 per thousand Btu.
Highlights of TTE’s Release
TotalEnergies continued with its multi-energy strategy with a focus on renewable energy. The company commenced production from the high-margin Anchor oil project in the United States and the Fenix gas project in Argentina. The company also launched the GranMorgu project in Suriname, which will support its production growth target of 3% per year through 2030. TTE continues to strengthen future cash flows by marketing its LNG volumes through signing several medium-term sales contracts in Asia this quarter.
Net operating income was $4.64 billion, down 31.9% year over year due to lower refining margins.
Interest expenses were $797 million, up from the prior-year period.
In the third quarter of 2024, TotalEnergies acquired assets worth $1.8 billion and sold assets worth $133 million.
It repurchased 29.3 million shares in the third quarter of 2024 for $2 billion. TotalEnergies repurchased 88.1 million shares in the first nine months of 2024 for $6 billion.
TTE’s Segmental Details
Exploration & Production’s operating earnings were $2.48 billion, down 20.9% from $3.14 billion in the year-ago period.
Integrated LNG’s operating income was $1.06 billion, down 20.8% from $1.34 billion in the year-earlier quarter.
Integrated Power’s operating income was $485 million, down 4.2% from $506 million in the year-ago quarter.
Refining & Chemicals’ operating income of $0.24 billion declined 82.8% from $1.40 billion in the prior-year quarter.
Marketing & Services’ operating income of $364 million fell 13.9% from $423 million in the third quarter of 2023.
TTE’s Financial Update
Cash and cash equivalents as of Sept. 30, 2024 were $25.67 billion compared with $24.73 billion as of Sept. 30, 2023. Gearing, including leases, was 17.9% at the end of the third quarter of 2024 compared with 17.4% at the third-quarter 2023-end.
Cash flow from operating activities at the third-quarter end was $4.76 billion.
TTE’s Guidance
TotalEnergies expects fourth-quarter 2024 hydrocarbon production in the range of 2,400-2,450 thousand barrels of oil equivalent per day. The guidance considers benefiting from the end of security-related disruptions in Libya and the start-up of the Mero-3 project in Brazil, which are compensated by several planned shutdowns.
TTE anticipates investing in the range of $17-$18 billion in 2024.
In the fourth quarter of 2024, TTE expects the refining utilization rate to be more than 85%, with a turnaround planned at the Leuna refinery in October.
TTE’s Zacks Rank
TotalEnergies currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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An Upcoming Release
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