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TotalEnergies (TTE) Q4 Earnings Beat Estimates, Sales Rise Y/Y

TotalEnergies SE TTE has reported fourth-quarter 2022 operating earnings of $2.97 (€2.93) per share, beating the Zacks Consensus Estimate of $2.93 per share by 1.4%.

The bottom line improved 17% from the year-ago figure of $2.55 (€2.19) per share. The year-over-year improvement was due to an increase in commodity prices.

Total Revenues

Total revenues for the fourth quarter were $68.5 billion, up 13.6% from the $60.4 billion generated in the year-ago period.

Production

Fourth-quarter hydrocarbon production averaged 2,812 thousand barrels of oil equivalent per day (kboe/d), down 1% year over year. The decline was due to the higher planned maintenance, the natural decline of fields, price effects, the withdrawal from Myanmar, the expiration of the Qatargas 1 operating license and security-related production cuts in Libya and Nigeria.

For the reported quarter, liquids production averaged 1,570 thousand barrels per day, up 4% from the year-ago period.

Quarterly gas production was 6,681 thousand cubic feet per day, down 9% year over year due to lower gas output from Africa, Asia-Pacific, the Middle East and North Africa and Europe and Central Asia.

Realized Price

The fourth quarter’s realized price for Brent was up 11.3% to $88.8 per barrel from $79.8 in the year-ago period. The average realized liquid price was $80.6 per barrel, up 11.2% from the year-ago figure.

Realized gas prices improved 11.9% from the prior-year quarter to $12.74 per thousand British thermal units (Btu).

Realized LNG prices improved 13% from the prior-year quarter to $14.83 per thousand Btu.

Highlights of the Release

The net operating income was $8,238 million, up 13% from the year-ago period due to higher commodity prices and refining margins.

Interest expenses for the reported quarter were $719 million, up 49% from $483 million in the year-ago period.

In fourth-quarter 2022, TotalEnergies acquired assets worth $292 million and $5,872 million for full-year 2022.

TTE bought back shares worth $2 billion in the fourth quarter and aims to repurchase $2 billion worth of shares in first-quarter 2023.

The overall fourth-quarter net income of TotalEnergies was impacted by a new impairment of $4.1 billion related to Russian assets.

Segmental Details

Exploration & Production’s operating earnings were $3,528 million, slightly ahead of the $3,525 million from the year-ago period.

Integrated Gas, Renewable & Power’s operating income was $2,889 million, up 5% from $2,789 million in the year-ago quarter.

Refining & Chemicals’ operating income was $1,487 million, up 168.9% from $553 million in the year-ago quarter.

Marketing & Services’ operating income was $334 million, down 30% from $479 million in fourth-quarter 2021.

Financial Update

Cash and cash equivalents as of Dec 31, 2022, were $33.1 billion compared with $21.3 billion as of Dec 31, 2021. Net debt to capital was 12.7% at the end of fourth-quarter 2022, down from 20.1% at the end of fourth-quarter 2021.

Cash flow from operating activities at the fourth-quarter end was $5,618 million, down 51.7% from the year-ago period.

Guidance

TotalEnergies expects 2023 hydrocarbon production to improve by 2% to touch 2.5 Mboe/d, primarily due to the contribution from three startups lined up to begin operation in 2023.

TotalEnergies expects to invest $16 billion in 2023, of which 32% will be allocated to further strengthening renewable operations and electricity.

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.

Other Releases

Exxon Mobil Corporation’s XOM fourth-quarter 2022 earnings per share of $3.40 beat the Zacks Consensus Estimate of $3.32 by 2.41%.

The Zacks Consensus Estimate for Exxon Mobil’s first-quarter 2023 EPS of $2.59 per share implies year-over-year increase of 25.12%. Exxon Mobil’s long-term (three- to five-year) earnings growth is pegged at 23.07%.

Chevron Corporation CVX reported adjusted fourth-quarter earnings per share of $4.09, missing the Zacks Consensus Estimate of $4.16 by 1.7%.

The Zacks Consensus Estimate for Chevron’s first-quarter 2023 EPS of $3.69 per share implies year-over-year increase of 9.82%. CVX’s long-term earnings growth is pegged at 14.27%.

Shell plc SHEL reported fourth-quarter earnings per ADS of $2.76, beating the Zacks Consensus Estimate of $2.10 by 31.4%.

The Zacks Consensus Estimate for Shell’s first-quarter 2023 EPS of $2.52 per share implies year-over-year increase of 5.88%. SHEL’s long-term earnings growth is pegged at 8.65%.

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