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TotalEnergies (TTE) Q4 Earnings and Revenues Miss Estimates

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TotalEnergies SE (TTE - Free Report) reported fourth-quarter 2023 operating earnings of $2.16 (€2.02) per share, lagging the Zacks Consensus Estimate of $2.35 by 8.1%.

The bottom line declined 27% from the year-ago figure of $2.97 (€2.93). The year-over-year decline was due to a correction in commodity prices.

TotalEnergies generated earnings per share of $8.67 for 2023, up 10.5% from the $7.85 generated in 2022.

Total Revenues

Total revenues for the fourth quarter were $54.7 billion, which lagged the Zacks Consensus Estimate of $55.1 billion by 0.7%.

Total revenues for 2023 were $237.1 billion, down 15.6% from $280.9 billion generated in 2022.

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 fourth quarter, hydrocarbon production averaged 2,462 thousand barrels of oil equivalent per day, down 12% year over year. The decline was due to the disposal of Canadian oil sands during the quarter.

For the reported quarter, liquids production averaged 1,506 thousand barrels per day, down 4% from the year-ago period.

Quarterly gas production was 5,158 thousand cubic feet per day, down 23% year over year due to lower gas output from Europe, the Americas and the Asia-Pacific region.

Realized Price

The fourth quarter’s realized price for Brent was down 5% to $84.3 per barrel from $88.8 in the year-earlier period. The average realized liquid price was $80.2 per barrel, down 1% from the previous year’s figure.

Realized gas prices were down 52% from the prior-year quarter to $6.17 per thousand British thermal units (Btu).

Realized LNG prices were down 31% from the year-earlier quarter to $10.28 per thousand Btu.

Highlights of the Release

TotalEnergies continued with its multi-energy strategy during the fourth quarter and announced the extension of its partnership with Oman LNG by 10 years and Qalhat LNG by 5 years.

Net operating income was $5,724 million, down 31% from the year-ago period due to lower production volumes and commodity prices.

Interest expenses were $660 million, down 8% from $719 million in the prior-year period.

In fourth-quarter 2023, TotalEnergies acquired assets worth $0.7 billion and sold assets worth $6.1 billion.

It repurchased 142.6 million shares in 2023 for $9 billion, of which 43.7 million shares were repurchased in fourth-quarter 2023 for $2.9 billion.

Segmental Details

Exploration & Production’s operating earnings were $2.8 billion, down 21% from $3.5 billion in the year-ago period.

Integrated LNG’s operating income of $1.45 billion tumbled 40% from $2.4 billion in the year-earlier quarter.

Integrated Power’s operating income of $527 million rose 10% from $481 million in the year-ago quarter.

Refining & Chemicals’ operating income of $633 million plunged 57% from $1,487 million in the prior-year quarter.

Marketing & Services’ operating income of $306 million dipped 8% from $334 million in fourth-quarter 2022.

Financial Update

Cash and cash equivalents as of Dec 31, 2023, were $27.3 billion compared with $33.2 billion as of Dec 31, 2022. Gearing, including leases, was 10.9% at the end of fourth-quarter 2023 compared with 12.7% at fourth-quarter 2022-end.

Cash flow from operating activities at the fourth-quarter end was $16.15 billion, up a whopping 187.5% from the year-ago period.

Guidance

TotalEnergies expects first-quarter 2024 hydrocarbon production to be above 2.4 Mboe/d due to the start-up of Mero 2 in Brazil, which will impact the sales of TTE’s oil sand assets in Canada. The company plans to buy back shares worth $2 billion in first-quarter 2024.

It anticipates investing in the range of $17-$18 billion in 2024, of which $5 billion will be dedicated to Integrated Power.

In 2024, TTE expects the refining utilization rate to be above 85%.

Zacks Rank

TotalEnergies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Exxon Mobil Corporation (XOM - Free Report) reported fourth-quarter 2023 earnings of $2.48, which surpassed the Zacks Consensus Estimate of $2.21 per share by 12.2%.

The Zacks Consensus Estimate for Exxon Mobil’s 2024 EPS of $9.31 implies an increase of 0.3% in the last 7 days. XOM’s long-term (three- to five-year) earnings growth is anticipated to be 3%.

Chevron Corporation (CVX - Free Report) reported fourth-quarter 2023 earnings of $3.45, which surpassed the Zacks Consensus Estimate of $3.29 per share by 4.9%.

The Zacks Consensus Estimate for Chevron’s 2024 EPS of $9.31 implies a decline of 0.8% in the last 7 days. CVX’s long-term earnings growth is anticipated to be 14.3%.

Hess Corporation (HES - Free Report) reported fourth-quarter 2023 earnings of $1.63, which surpassed the Zacks Consensus Estimate of $1.43 per share by nearly 14%.

The Zacks Consensus Estimate for Hess’ 2024 EPS of $8.1 implies a decline of 6.4% in the last 7 days.

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