TotalEnergies (TTE) Q1 Earnings Beat Estimates, Sales Drop Y/Y
TotalEnergies SE TTE has reported first-quarter 2023 operating earnings of $2.61 (€2.43) per share, beating the Zacks Consensus Estimate of $2.43 per share by 7.4%.
The bottom line declined 23% from the year-ago figure of $3.40 (€3.03) per share. The year-over-year decline was due to a correction in commodity prices.
Total Revenues
Total revenues for the first quarter were $62.6 billion, down 8.7% from the $68.6 billion generated in the year-ago period.
TotalEnergies SE Sponsored ADR Price, Consensus and EPS Surprise
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Production
First-quarter hydrocarbon production averaged 2,524 thousand barrels of oil equivalent per day (kboe/d), up 1% year over year (excluding Novatek). The increase was due to startups and ramp-ups, and an increase in OPEC+ production quotas.
For the reported quarter, liquids production averaged 1,562 thousand barrels per day, up 2% from the year-ago period.
Quarterly gas production was 5,191 thousand cubic feet per day, down 28% year over year due to lower gas output from Africa, the Asia Pacific, Europe and America.
Realized Price
The first quarter’s realized price for Brent was down 20.5% to $81.2 per barrel from $102.2 in the year-ago period. The average realized liquid price was $73.4 per barrel, down 18.5% from the year-ago figure.
Realized gas prices were down 27.5% from the prior-year quarter to $8.89 per thousand British thermal units (Btu).
Realized LNG prices improved 2.4% from the prior-year quarter to $13.27 per thousand Btu.
Highlights of the Release
The net operating income was $6,993 million, down 26% from the year-ago period due to lower commodity prices.
Interest expenses for the reported quarter were $710 million, up 54% from $462 million in the year-ago period.
In first-quarter 2023, TotalEnergies acquired assets worth $3,256 million and sold assets worth $269 million in the same timeframe.
Segmental Details
Exploration & Production’s operating earnings were $2,653 million, down 47% from $3,528 million in the year-ago period.
Integrated LNG’s operating income was $2,072 million, down 34% from $2,408 million in the year-ago quarter.
Integrated Power’s operating income was $370 million.
Refining & Chemicals’ operating income was $1,618 million, up 44% from $1,487 million in the year-ago quarter.
Marketing & Services’ operating income was $280 million, up 3% from $272 million in first-quarter 2022.
Financial Update
Cash and cash equivalents as of Mar 31, 2023, were $27.9 billion compared with $33.1 billion as of Dec 31, 2022. Net debt to capital was 16.5% at the end of first-quarter 2023 compared with 12.7% at the end of fourth-quarter 2022.
Cash flow from operating activities at the first-quarter end was $5,133 million, down 32.6% from the year-ago period.
Guidance
TotalEnergies expects second-quarter 2023 hydrocarbon production to be 2.5 Mboe/d.
LNG sales are expected to benefit from the restart of Freeport LNG and a higher utilization rate of refineries, up to more than 80%, due to the end of strike in France.
TotalEnergies expects to invest $16 billion in 2023, of which $5 billion will be allocated to further strengthening renewable operations and electricity.
TTE aims to repurchase stocks worth $2 billion in the second quarter, which will further boost shareholders’ value.
Zacks Rank
TotalEnergies carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Exxon Mobil Corporation’s XOM is going to release first-quarter 2023 earnings on Apr 28. The Zacks Consensus Estimate for the quarter is pegged at $2.65, suggesting a year-over-year increase of 28.02%.
The Zacks Consensus Estimate for Exxon Mobil’s 2023 EPS of $9.90 per share implies a year-over-year decline of 29.6%. Exxon Mobil’s long-term (three- to five-year) earnings growth is pegged at 21.38%.
Chevron Corporation CVX is going to release first-quarter 2023 earnings on Apr 28. The Zacks Consensus Estimate for the quarter is pegged at $3.36 per share.
The Zacks Consensus Estimate for Chevron’s 2023 EPS of $14.39 per share indicates a year-over-year decline of 23.6%. CVX’s long-term earnings growth is pegged at 14.27%.
Shell plc SHEL will report first-quarter 2023 earnings on May 4. The Zacks Consensus Estimate of $2.30 for the quarter suggests a year-over-year decline of 3.36%.
The Zacks Consensus Estimate for Shell’s 2023 EPS of $9.07 per share implies a year-over-year decline of 15.71%. SHEL’s long-term earnings growth is pegged at 9.53%.
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