Mixed Q4 For TotalEnergies: Profit Miss, Pledges Shareholder Returns With Dividend Hike + $2B Buyback

TotalEnergies SE TTE shares are dipping after it reported fourth-quarter FY23 results.

Revenues of $59.237 billion, beating the consensus of $41.797 billion.

Hydrocarbon production fell 12% Y/Y to 2,642 kboe/d, with a 13% Y/Y decline in Exploration & Production and 8% Y/Y in Integrated LNG businesses. Refinery throughput declined 1% Y/Y.

Also Read: Beyond Oil: TotalEnergies Doubles Down On Renewables, Gas

Adjusted net operating income net operating income fell 31% Y/Y to $5.72 billion, on a decline of 21% Y/Y in Exploration & Production, 40% Y/Y in Integrated LNG, and 57% Y/Y in Refining & Chemicals businesses.

Adjusted EBITDA declined 27% Y/Y to $11.70 billion. Adjusted EPS fell 27% Y/Y to $2.16, missing the consensus of $2.28.

Operating cash flow rose to $16.2 billion from $5.6 billion a year ago.

Dividend: The company boosted its quarterly dividend per share by 7.1% to €0.79, which the board of directors will propose at the shareholders’ meeting on May 24, 2024.

Repurchase: The company discloses share repurchase of $2 billion for the first quarter FY24. 

Outlook: For the first quarter of FY24, the company anticipates hydrocarbon production to be above 2.4 Mboe/d, reflecting the start-up of Mero 2 in Brazil and the divestment of Canadian upstream assets.

Read: TotalEnergies Shares Dip – Reportedly Explores Sale Of 50% Stake In Whopping $2.5B Renewable Portfolio

Also, TotalEnergies projects hydrocarbon production to grow 2%, excluding Canada, benefitting from stat-ups such as Tyra in Denmark and Anchor in the U.S., and expects a utilization rate in refineries above 85% in FY24.

The company anticipates the average LNG selling price to be around $10/Mbtu in the first quarter.

For FY24, the company reaffirmed net investments of $17 billion-$18 billion, including $5 billion for Integrated Power.

The company is committing to dedicating over 40% of CFFO payout to return to shareholders in FY24.

Also Read: TotalEnergies Goes Both Ways: Fighting Emissions While Investing In Exploration

Price Action: TTE shares are trading lower by 2.83% at $63.21 premarket on the last check Wednesday.