TotalEnergies (TTE) Earnings: Q3 Insights Amidst Volatile Brent and LNG Price Movements

TotalEnergies on Smartkarma

Analyst coverage of TotalEnergies on Smartkarma by Suhas Reddy reveals concerns about the company’s recent performance. In Suhas Reddy‘s report titled “Earnings Review,” TotalEnergies missed revenue and EPS estimates by 7.3% and 7.2% respectively due to lower refining margins impacting profitability. Despite stable upstream production expected in Q3, a 7.4% year-on-year drop in net profit was highlighted, with TotalEnergies reporting cash flow of USD 7.8 billion in Q2 and completing USD 2 billion in buybacks. The report also authorized up to USD 2 billion in buybacks for Q3.

Furthermore, in another report titled “TotalEnergies Hits Roadblock,” Suhas Reddy points out that lower gas realizations and refining margins are expected to challenge TotalEnergies despite robust hydrocarbon production in Q2 2024. Although revenue is anticipated to rise year-on-year and quarter-on-quarter, EPS is forecasted to decline sequentially. The report highlights that higher utilisation rates may help offset reduced refining margins in Europe and the Middle East, while seasonal factors could lower the Integrated Power segment’s adjusted net operating income by 18.2% quarter-on-quarter to USD 500 million.

A look at TotalEnergies Smart Scores

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 solid ratings across various factors. With a high Growth score of 5, the company is positioned well for future expansion and development. This is complemented by strong scores in Dividend, Resilience, and Momentum, all indicating a stable and robust financial performance going forward.

TotalEnergies also demonstrates a competitive Value score of 3, further highlighting its attractiveness from an investment perspective. Overall, with a diversified portfolio spanning oil and natural gas exploration, production, refining, and chemical operations, TotalEnergies has positioned itself as a resilient player in the energy sector with promising growth potential ahead.

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