- Adjusted net income for TotalEnergies in Q2 2024 fell to $4.67 billion, missing the estimate of $4.92 billion and down 5.7% year-over-year (y/y).
- Adjusted EBITDA was $11.07 billion, slightly below the estimate of $11.23 billion and a decrease of 0.3% y/y.
- Exploration & production adjusted net operating income increased by 14% y/y to $2.67 billion, above the estimate of $2.62 billion.
- Integrated LNG adjusted net operating income declined by 13% y/y to $1.15 billion, slightly missing the estimate of $1.18 billion.
- Integrated power adjusted net operating income rose by 12% y/y to $502 million, falling short of the $526.9 million estimate.
- Refining & chemicals adjusted net operating income dropped by 36% y/y to $639 million, well below the estimate of $792.2 million.
- Marketing & services adjusted net operating income decreased by 16% y/y to $379 million, missing the estimate of $410.7 million.
- Revenue was $49.18 billion, down 4.6% y/y and below the estimate of $55.71 billion.
- Net income dropped by 7.4% y/y to $3.79 billion, missing the estimate of $4.93 billion.
- Adjusted earnings per share (EPS) were $1.98 compared to $1.99 y/y, below the estimate of $2.09.
- Interim dividend per share was set at €0.79, slightly above the estimate of €0.78.
- Debt-adjusted cash flow was $7.90 billion, an 8.2% decline y/y, missing the estimate of $8.51 billion.
- Cash flow from operations was $9.01 billion, down 9% y/y and slightly below the estimate of $9.04 billion.
- Production was 2.44 million barrels of oil equivalent per day (boe/d), a decline of 1.2% y/y but slightly above the estimate of 2.43 million boe/d.
- Q3 2024 forecast expects production to be between 2.4 million and 2.45 million boe/d, with an estimate of 2.47 million boe/d.
- TotalEnergies plans to buy back up to $2 billion worth of shares in the third quarter.
- Global refining margins remain impacted by low diesel demand in Europe and market normalization post-Russian supply disruptions.
- European gas prices are expected to be between $8 and $10/Mbtu in Q3 2024.
- Asian LNG prices are above $12/Mbtu, supported by higher demand, especially in China and India.
- Expected average LNG selling price should be around $10/Mbtu in Q3.
- Start-up of the Anchor project in the US Gulf of Mexico is expected in Q3 2024.
- Company confirms net investments guidance of $17 billion to $18 billion for 2024, with $5 billion dedicated to Integrated Power.
- Q3 refining utilization rate is anticipated to be above 85%, benefiting from the restart of the Donges refinery in France.
- Analyst recommendations: 18 buys, 11 holds, 0 sells.
TotalEnergies on Smartkarma
Analyst coverage of TotalEnergies on Smartkarma reveals insights from Suhas Reddy, who published a research report titled “TotalEnergies Hits Roadblock with Lower Gas Prices and Refining Margins.” Reddy adopts a bearish stance, highlighting challenges faced by TotalEnergies such as lower gas realizations and refining margins impacting gains from strong hydrocarbon production in Q2. While revenue is projected to increase year-on-year and quarter-on-quarter, the forecasted EPS decline indicates potential hurdles ahead. Despite robust hydrocarbon production in Q2 2024, issues with gas realizations and refining margins pose ongoing concerns for the company. Additionally, seasonal factors are expected to negatively impact the Integrated Power segment’s adjusted net operating income by 18.2% QoQ to USD 500 million.
A look at TotalEnergies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, TotalEnergies shows a promising long-term outlook. With strong scores in growth and dividend factors, the company demonstrates potential for future expansion and consistent returns for investors. Additionally, its resilience score reflects a solid ability to weather market fluctuations, further bolstering its attractiveness.
TotalEnergies‘ strategic positioning in the oil and gas industry coupled with its diversified operations in chemicals and gasoline filling stations enhances its overall stability and growth prospects. The above-average scores in growth and resilience indicate a well-rounded investment choice for those seeking a balanced portfolio with long-term growth potential.
### TOTAL S.A. explores for, produces, refines, transports, and markets oil and natural gas. The Company also operates a chemical division which produces polypropylene, polyethylene, polystyrene, rubber, paint, ink, adhesives, and resins. TOTAL operates gasoline filling stations in Europe, the United States, and Africa. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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