Zinger Key Points
- TotalEnergies reports Q3 EPS of $1.74, below expectations; revenue tops at $52.02B vs. $46.21B forecasted.
- Declares €0.79 dividend per share, with $2B Q4 buyback plan and a forecasted 2.4-2.45 Mboe/d hydrocarbon production.
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TotalEnergies SE TTE shares are trading lower premarket on Thursday. The company reported third-quarter adjusted EPS of $1.74, missing the consensus of $1.82.
- Sales of $52.02 billion topped the consensus of $46.207 billion.
- Hydrocarbon production fell 1% quarter over quarter to 2,409 kboe/d due to unplanned shutdowns in Ichthys LNG and security-related disruptions in Libya.
- Notably, last week, the company disclosed that it expected its hydrocarbon production levels in the third quarter to be around 2.4 Mboe/d, led by the ramp-up of the Mero 2 project in Brazil.
- Apart from this, the company witnessed a 7% quarter-over-quarter decline in Exploration & Production and an 8% quarter-over-quarter decrease in Integrated LNG businesses. Refinery throughput was up 2% quarter over quarter.
- Adjusted operating income fell 7% quarter-over-quarter to $2.48 billion in Exploration & Production, declined 8% quarter-over-quarter to $1.06 billion in Integrated LNG, and decreased 62% quarter-over-quarter to $241 million in Refining & Chemicals segments.
- Adjusted EBITDA stood at $10.05 billion, down 9% quarter-over-quarter.
- Operating cash flow stood at $7.2 billion, down 20% quarter-over-quarter in the quarter.
Repurchase: TotalEnergies repurchased 29.3 million shares in the third quarter of 2024 for $2 billion.
The company has approved a $2 billion share buyback for the fourth quarter of 2024.
Outlook: For the fourth quarter of fiscal year 2024, the company anticipates hydrocarbon production of 2.4 and 2.45 Mboe/d.
- TotalEnergies expects a utilization rate in refineries above 85%.
- The company anticipates the average LNG selling price to be around $10/Mbtu in the fourth quarter.
- For fiscal year 2024, the company reaffirmed net investments of $17 billion-$18 billion.
Investors can gain exposure to the stock via Advisor Managed Portfolios Miller Value Partners Appreciation ETF MVPA and Octane All-Cap Value Energy ETF OCTA.
Price Action: TTE shares are down 1.42% at $62.67 premarket at the last check Thursday.
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