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TotalEnergies (TTE) Q2 Earnings and Revenues Lag Estimates

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TotalEnergies SE (TTE - Free Report) reported second-quarter 2024 operating earnings of $1.98 (€1.85) per share, missing the Zacks Consensus Estimate of $2.11 by 6.2%.

The bottom line declined 0.5% from the year-ago figure of $1.99 (€1.84). The year-over-year decline was due to lower refining margins.

Total Revenues

Total revenues for the second quarter were $53.7 billion, which lagged the year-ago reported revenues of $56.3 billion by 4.5%.

Production

In the second quarter, hydrocarbon production averaged 2,441 thousand barrels of oil equivalent per day, down 1% year over year. The decline was due to a planned maintenance outage. The hydrocarbon production volumes were near the upper end of the guidance range of 2,400-2,450 thousand barrels of oil equivalent per day.

In the reported quarter, liquid production averaged 1,477 thousand barrels per day, down 6% year over year.

Quarterly gas production was 5,180 thousand cubic feet per day, up 7% year over year, attributed to higher gas output from all regions across the globe where TotalEnergies has natural gas operations.

Realized Price

Quarterly realized price for Brent was up 9% to $85 per barrel from $78.1 in the year-earlier period. The average realized liquid price was $81 per barrel, up 13% year over year.

Realized gas prices were down 16% year over year to $5.05 per thousand British thermal units (Btu).

Realized LNG prices were down 5% year over year to $9.32 per thousand Btu.

Highlights of the Release

TotalEnergies continued with its multi-energy strategy with a focus on renewable energy. The company further upgraded its portfolio, through acquisitions in Malaysia and deep offshore Congo, and divestments of mature assets in Nigeria, Congo, the United Kingdom and Brunei. In addition, TTE continues to increase medium-term oil exposure within its LNG portfolio by signing two new mid-term Brent-indexed LNG sales contracts in Asia for 1.3 Mt/y.

Net operating income was $5.33 billion, down 4% year over year due to lower refining margins.

Interest expenses were $725 million, nearly at par with the prior-year period.

In the second quarter of 2024, TotalEnergies acquired assets worth $544 million and sold assets worth $324 million.

It repurchased 28.1 million shares in second-quarter 2024 for $2 billion. TotalEnergies repurchased 58.7 million shares in the first half of 2024 for $4 billion.

Segmental Detail

Exploration & Production’s operating earnings were $2.67 billion, up 14% from $2.35 billion in the year-ago period.

Integrated LNG’s operating income was $1.15 billion, down 13% from $1.33 billion in the year-earlier quarter.

Integrated Power’s operating income of $502 million rose 12% from $450 million in the year-ago quarter.

Refining & Chemicals’ operating income of $0.64 billion declined 36% from $1 billion in the prior year quarter.

Marketing & Services’ operating income of $379 million fell 16% from $449 million in second-quarter 2023.

Financial Update

Cash and cash equivalents as of Jun 30, 2024, were $23.1 billion compared with $25.6 billion as of Jun 30, 2023. Gearing, including leases, was 15.3% at the end of second-quarter 2024 compared with 16.3% at second-quarter 2023-end.

Cash flow from operating activities at the second-quarter end was $4.5 billion.

Guidance

TotalEnergies expects third-quarter 2024 hydrocarbon production in the range of 2,400-2,450 thousand barrels of oil equivalent per day. The guidance takes into consideration the contribution from the startup of Anchor, in the U.S. Gulf of Mexico.

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

In third-quarter 2024, TTE expects the refining utilization rate to be more than 85%, benefiting from the restart of the Donges refinery in France.

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.

Upcoming Releases

Shell Plc (SHEL - Free Report) is going to release second-quarter 2024 earnings on Aug 1. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, suggesting a decline of 32.7% from the year-ago reported figure.

SHEL’s long-term (three-to-five-year) earnings growth rate is anticipated to be 5.14%. SHEL had an average earnings surprise of 9.15% in the last four reported quarters.

ExxonMobil (XOM - Free Report) is going to release second-quarter 2024 earnings on Aug 2. The Zacks Consensus Estimate for earnings is pegged at $2.08 per share, indicating an increase of 7.2% from the year-ago reported figure. XOM’s long-term earnings growth rate is anticipated to be 3%.

Occidental Petroleum (OXY - Free Report) is going to release second-quarter 2024 earnings on Aug 7. The Zacks Consensus Estimate for earnings is pegged at 83 cents per share, implying an increase of 22.06% from the year-ago reported figure.

OXY had an average earnings surprise of 11.45% in the last four reported quarters.


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