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TotalEnergies (TTE) Q3 Earnings Miss Estimates, Sales Rise Y/Y

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TotalEnergies SE (TTE - Free Report) has reported third-quarter 2022 operating earnings of $3.83 (€3.78) per share, lagging the Zacks Consensus Estimate of $3.91 per share by 2.04%.

The bottom line improved 117.6% from the year-ago figure of $1.76 (€1.49) per share. The year-over-year improvement was due to an increase in commodity prices.

Total Revenues

Total revenues for the third quarter were $69.1 billion, up 26.3% from the $54.7 billion generated in the year-ago period.

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Production

Third-quarter hydrocarbon production averaged 2,669 thousand barrels of oil equivalent per day (kboe/d), down 5% year over year. The decline was due to the higher planned maintenance, the natural decline of fields, price effects, an unplanned shutdown on Kashagan, expiration of the Qatargas 1 operating license and security-related production cuts in Libya and Nigeria.

For the reported quarter, liquids production averaged 1,494 thousand barrels per day, down 2% from the year-ago period.

Quarterly gas production was 6,357 thousand cubic feet per day, down 10% year over year due to lower gas output from Africa, Asia-Pacific, the Middle East and North Africa.

Realized Price

Third-quarter realized price for Brent was up 37.1% to $100.8 per barrel from $73.5 in the year-ago period. The average realized liquid price was $93.6 per barrel, up 39.5% from the year-ago figure.

Realized gas prices improved 165.9% from the prior-year quarter to $16.83 per thousand British thermal units (Btu).

Realized LNG prices improved 136.4% from the prior-year quarter to $21.51 per thousand Btu.

Highlights of the Release

The operating income was $10,279 million, up 91% from the year-ago period due to higher commodity prices.

Interest expenses for the reported quarter were $633 million, up 39% from $454 million in the year-ago period.

In third-quarter 2022, TotalEnergies acquired $1,716 million worth of assets, primarily related to the acquisition of 50% of Clearway Energy Group.

TTE bought back shares worth $2 billion in the third quarter. The company has repurchased shares worth $5 billion in the first nine months of 2022.

The overall third-quarter net income of TotalEnergies was impacted by a new impairment of $3.1 billion related to Russian assets.

Segmental Details

Exploration & Production’s operating earnings were $4,217 million, up 55% from $2,726 million in the year-ago period.

Integrated Gas, Renewable & Power’s operating income was $3,649 million, up 126.9% from $1,608 million in the year-ago quarter.

Refining & Chemicals’ operating income was $1,935 million, up 221.4% from $602 million in the year-ago quarter.

Marketing & Services’ operating income was $478 million, up 9% from $438 million in third-quarter 2021.

Financial Update

Cash and cash equivalents as of Sep 30, 2022, were $35.9 billion compared with $21.3 billion as of Dec 31, 2021. Net debt to capital was 9.5% at the end of third-quarter 2022, down from 22.1% at the end of third-quarter 2021.

Cash flow from operating activities at the third-quarter end was $17,848 million, up 216.5% from the year-ago period.

Guidance

TotalEnergies expects fourth-quarter production to reach 2.8 Mboe/d, slightly better sequentially due to a reduction in planned maintenance and the re-start of Kashagan production.

TTE expects average LNG prices to remain at a high level of $17 per thousand British thermal units (Btu) in fourth-quarter 2022.

TotalEnergies expects to invest $16 billion in 2022, out of which 25% will be allocated to further strengthening renewable operations and electricity.

Zacks Rank

Currently, TotalEnergies 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 likely to come up with an earnings beat when it reports third-quarter results on Oct 28. Exxon Mobil has an Earnings ESP of +1.39% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Exxon Mobil’s 2022 EPS of $13.22 per share implies a year-over-year increase of 145.72%.

Chevron Corporation (CVX - Free Report) is scheduled to release third-quarter 2022 results on Oct 28. Chevron has an Earnings ESP of +0.06% and a Zacks Rank #3 (Hold) at present.

The Zacks Consensus Estimate for Chevron’s 2022 EPS of $18.48 per share implies a year-over-year increase of 127.3%.

Enterprise Product Partners (EPD - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov 1. Enterprise Product Partners has an Earnings ESP of +0.54% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for Enterprise Product Partners’ 2022 EPU of $2.48 implies a year-over-year surge of 18.1%.


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