TotalEnergies (TTE) Q3 Earnings Beat Estimates, Sales Up Y/Y

TotalEnergies SE TTE reported third-quarter 2021 operating earnings of $1.76 (€1.49) per share, beating the Zacks Consensus Estimate of $1.56 by 12.8%.

The bottom line also improved 506.9% from the year-ago figure of 29 cents (€0.24) per share. This year-over-year improvement was due to an increase in commodity prices and global economic recovery. These factors also resulted in an improvement in demand.

Total Revenues

Total revenues came in at $54.72 billion, up 65.1% from $33.14 billion generated in the year-ago quarter.

TotalEnergies SE Sponsored ADR Price, Consensus and EPS Surprise

TotalEnergies SE Sponsored ADR price-consensus-eps-surprise-chart | TotalEnergies SE Sponsored ADR Quote

Production

Third-quarter hydrocarbon production averaged 2,814 thousand barrels of oil equivalent per day (kboe/d), up 4% year over year. This improvement was due to startups, ramp-up of projects, higher demand for natural gas and an increase in OPEC production quotas.

For the reported quarter, liquids production averaged 1,517 thousand barrels per day, up 6% from the year-ago period.

Quarterly gas production was 7,070 thousand cubic feet per day, up 1% year over year due to increased gas output from the Europe and Central Asia region as well as the Middle East and North Africa.

Realized Price

Third-quarter realized price for Brent was up 71% to $73.5 per barrel from $42.9 in the year-ago period. The average realized liquid price was $67.1 per barrel, up 68% from the year-ago figure.

Realized gas prices improved 151.2% from the prior-year quarter to $6.33 per thousand British thermal units (Btu).

Realized LNG prices improved 154.9% from the prior-year quarter to $9.1 per thousand Btu.

Highlights of the Release

Operating income was $5,374 million, up 268.3% from the year-ago period due to higher commodity prices.

Interest expenses for the reported quarter were $454 million, down 17.3% from $549 million in the year-ago period.

In third-quarter 2021, TotalEnergies acquired $126 million worth of assets and sold assets valued at $1,084 million. During the quarter, it acquired a 10% interest in Lapa block in Brazil.

Segment Details

Exploration & Production’s operating earnings were $2,726 million, up 240.3% from $801 million in the year-ago period.

Integrated Gas, Renewable & Power’s operating income was $1,608 million, up 464.2% from $285 million in the year-ago quarter.

Refining & Chemicals’ operating income was $602 million against a loss of $88 million in the year-ago quarter.

Marketing & Services’ operating income was $438 million, down 5% from $461 million in third-quarter 2020.

Financial Update

Cash and cash equivalents as of Sep 30, 2021 were $28.9 billion compared with $30.6 billion in the corresponding period of 2020. Net debt to capital was 22.1% at quarter-end, down from 26.1% at third quarter 2020-end.

Cash flow from operating activities at second quarter-end was $5,640 million, up 29.6% year over year.

Guidance

TotalEnergies, taking into consideration the OPEC quotas, expects total production for the fourth quarter in the range of 2,850-2,900 Kboe/d.

It expects the positive movement in commodity prices to continue in second-half 2021 and further increase the realized prices of LNG.

TotalEnergies expects to invest $13 billion in 2021, out of which $3 billion will be spent on renewables and electricity.

Zacks Rank

Currently, TotalEnergies carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Releases

Chevron Corporation CVX is scheduled to release third-quarter 2021 results on Oct 29, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $2.21 per share.

Exxon Mobil Corporation XOM is scheduled to release third-quarter 2021 results on Oct 29, before the opening bell. The Zacks Consensus Estimate for earnings for the quarter is pegged at $1.57 per share.

Enbridge Inc. ENB is scheduled to release third-quarter 2021 results on Nov 5, before the opening bell. The Zacks Consensus Estimate for quarterly earnings is pegged at 46 cents per share.

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