TotalEnergies Boasts Strong Revenue Despite Q3 EPS Miss, Decline In LNG And Production

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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