Earnings Beat, Cash Flow Heat: Mixed Quarter For TotalEnergies

TotalEnergies SE TTE reported an adjusted EPS of $2.14, down 18% Y/Y, beating the consensus of $2.06.

Hydrocarbon production fell 2% Y/Y to 2,461 kboe/d, with a 4% Y/Y decline in Exploration & Production and a 6% Y/Y increase in Integrated LNG businesses. Refinery throughput was up 2% Y/Y.

Adjusted operating income fell 4% Y/Y to $2.55 billion in Exploration & Production, declined 41% Y/Y to $1.22 billion in Integrated LNG, and decreased 41% Y/Y to $962 million in Refining & Chemicals segments.

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Adjusted EBITDA declined 19% Y/Y to $11.5 billion. Operating cash flow stood at $2.2 billion, down 58% Y/Y in the quarter.

Earlier this week, the company inked an agreement to buy a 50% stake in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn for $530 million. 

Dividend & Repurchase: The Board of Directors decided the first interim dividend of 0.79 euro per share for the fiscal year 2024, an increase close to 7% compared to 2023.

TotalEnergies repurchased 30.6 million shares in the first quarter of 2024 for $2 billion. The company authorized a share buyback for $2 billion in the second quarter of 2024.

Outlook: For the second quarter of FY24, the company anticipates hydrocarbon production of 2.4 and 2.45 Mboe/d, reflecting ramp-ups of Mero 2 in Brazil and Tyra in Denmark.

Also Read: TotalEnergies Trades Mature Assets for Growth In Low-Emission Congolese Oil Field

Also, TotalEnergies expects a utilization rate in refineries above 85% in the quarter.

The company anticipates the average LNG selling price to be within $9 and $10/Mbtu in the second quarter.

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

Investors can gain exposure to the stock via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF EIPX and Keating Active ETF KEAT.

Price Action: TTE shares are down 0.41% at $73.45 premarket at the last check Friday.