In today’s briefing:
- TotalEnergies Hits Roadblock with Lower Gas Prices and Refining Margins
- Actinver Research – Cement Sector: Attractive Valuations Strengthened Potential Returns (Sector Update)
- New Fortress Energy Inc.: Initiation of Coverage – Strategic Customer Contracts & Market Positioning Driving Our Bullish Thesis! – Major Drivers
- Talos Energy Inc. – Estimate Update/Stepping Up to the Plate
- VAALCO Energy, Inc. – Estimate Update Including Cote D’Ivoire Contribution
TotalEnergies Hits Roadblock with Lower Gas Prices and Refining Margins
- TotalEnergies’ robust hydrocarbon production in Q2 2024 will be offset by lower gas realizations and refining margins.
- Higher utilisation rates are expected to partially mitigate reduced refining margins in Europe and the Middle East.
- Seasonal factors are expected to lower the Integrated Power segment’s adjusted net operating income by 18.2% QoQ to USD 500 million.
Actinver Research – Cement Sector: Attractive Valuations Strengthened Potential Returns (Sector Update)
- The Cement Industry is an essential activity with an attractive growth perspective since cement is one of the most relevant commodities worldwide, especially for emerging economies.
- Cement companies such as CEMEX and GCC are well positioned to continue capturing the potential growth in their markets through differentiated products and clear targets to reduce CO2 emissions.
- Although we expect 2Q24 quarterly results to be weaker, with total EBITDA +1% YoY, any weakness in results is more than priced in at current prices, in our view.
New Fortress Energy Inc.: Initiation of Coverage – Strategic Customer Contracts & Market Positioning Driving Our Bullish Thesis! – Major Drivers
- New Fortress Energy (NFE) reported a solid set of financial results for the first quarter of 2024, reflecting strong operational performance and strategic growth initiatives.
- The company reported EBITDA of $340 million, aligning with management’s expectations and consistent with the company’s guidance for the year.
- This performance indicates a robust financial framework and clear visibility into the company’s path forward for the remainder of the year.
Talos Energy Inc. – Estimate Update/Stepping Up to the Plate
- We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.
- We have also increased our 2Q24 lease operating cost estimate to reflect workover activity and bumped our DD&A estimate.
- Talos’s latest guidance and our updated estimates are outlined in Figures 1 – 4.
VAALCO Energy, Inc. – Estimate Update Including Cote D’Ivoire Contribution
- Our updated estimates include the impact of the Svenska acquisition, which closed on April 30, 2024, and was included in management’s latest guidance update following the release of 1Q24 financial and operating results.
- The acquisition added a 27.39% non- operated working interest in the CI-40 license located offshore Côte d’Ivoire.
- On May 7, 2024, management increased the midpoint of FY24 working interest (WI) production guidance to ~25.0 MBOE/d from 22.1 MBOE/d.
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