TotalEnergies (NYSE:TTE) Announces Quarterly Earnings Results

Key Points

• TotalEnergies beat revenue expectations in Q2, posting $57.1 billion in revenue versus the $55.13 billion consensus, while EPS of $2.68 matched estimates.
• The company said earnings and cash flow were strong, with adjusted net income of $6.0 billion and cash flow of about $9.8 billion, helped by robust oil, refining, LNG and power markets.
• Shareholder returns remained a priority as TotalEnergies raised its interim dividend by 5.9%, authorized another $1.5 billion in buybacks, and cut gearing to 13.1%.

TotalEnergies (NYSE:TTE - Get Free Report) issued its earnings results on Thursday. The company reported $2.68 EPS for the quarter, meeting the consensus estimate of $2.68, Zacks reports. The firm had revenue of $57.10 billion during the quarter, compared to the consensus estimate of $55.13 billion. TotalEnergies had a net margin of 7.43% and a return on equity of 14.01%.

Here are the key takeaways from TotalEnergies' conference call:

• TotalEnergies reported strong Q2 results, with cash flow of about $9.8 billion and adjusted net income of $6.0 billion, supported by favorable oil, refining, LNG and power market conditions.
• The company’s upstream production grew more than 4% year over year excluding Middle East disruptions, and management said this was ahead of its full-year guidance. E&P cash flow also rose sharply, helped by new projects and strong operating performance.
• Refining, chemicals and marketing had an exceptional quarter as the company shifted refinery runs toward diesel and jet fuel, capturing historically strong margins. Marketing and Services delivered its best-ever quarter, while trading also contributed strongly outside of gas.
• Gas trading underperformed in Q2 because European gas prices fell instead of rising as expected, but management said the position has since improved and results could rebound in Q3. Integrated LNG was also hurt by Middle East-related disruptions, including lower Qatar output.
• TotalEnergies continued to reward shareholders and strengthen the balance sheet, cutting gearing to 13.1%, raising the interim dividend by 5.9%, and authorizing another $1.5 billion of buybacks for Q3. The company also kept CapEx at about $3.4 billion in the quarter, in line with its full-year investment plan.

TotalEnergies Stock Performance

NYSE TTE traded up $1.53 on Thursday, hitting $86.44. 2,745,719 shares of the stock were exchanged, compared to its average volume of 1,806,771. The company has a market capitalization of $207.26 billion, a PE ratio of 12.81, a P/E/G ratio of 3.02 and a beta of 0.14. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.08 and a quick ratio of 0.85. The business's fifty day moving average is $84.22 and its 200 day moving average is $81.96. TotalEnergies has a 52 week low of $57.39 and a 52 week high of $94.17.

Institutional Trading of TotalEnergies

Institutional investors and hedge funds have recently bought and sold shares of the business. FIL Ltd bought a new stake in shares of TotalEnergies in the fourth quarter valued at about $943,077,000. Invesco Ltd. increased its position in TotalEnergies by 4,679.0% during the fourth quarter. Invesco Ltd. now owns 8,454,770 shares of the company's stock worth $553,111,000 after acquiring an additional 8,277,855 shares during the period. Groupe la Francaise acquired a new stake in TotalEnergies in the 4th quarter worth about $435,653,000. Nuveen LLC bought a new stake in TotalEnergies in the 4th quarter valued at about $341,294,000. Finally, M&G PLC bought a new stake in TotalEnergies in the 4th quarter valued at about $217,439,000. Institutional investors own 16.53% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on TTE. BNP Paribas Exane upgraded shares of TotalEnergies from a "neutral" rating to an "outperform" rating in a research report on Friday, April 17th. Kepler Capital Markets raised TotalEnergies from a "reduce" rating to a "hold" rating in a research note on Thursday, April 23rd. Morgan Stanley restated an "overweight" rating on shares of TotalEnergies in a report on Tuesday, May 12th. Mizuho initiated coverage on TotalEnergies in a report on Monday. They set an "outperform" rating and a $103.00 price objective on the stock. Finally, Wall Street Zen lowered TotalEnergies from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. Eleven equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, TotalEnergies has an average rating of "Moderate Buy" and a consensus price target of $86.00.

Key Stories Impacting TotalEnergies

Here are the key news stories impacting TotalEnergies this week:

• Positive Sentiment: TotalEnergies reported Q2 adjusted net income of $6.0 billion, or $2.68 per share, matching analyst expectations while revenue of $57.1 billion came in above estimates, signaling solid operating performance. Article Title
• Positive Sentiment: The company said Q2 earnings rose sharply year over year, helped by higher oil prices and strong refining margins, which should support near-term profitability. Article Title
• Positive Sentiment: TotalEnergies announced a second interim dividend of €0.90 per share, up 5.9% from last year, underscoring management’s confidence and boosting the stock’s income appeal. Article Title
• Positive Sentiment: Net debt fell by $3.3 billion to $19.71 billion, indicating stronger balance-sheet discipline supported by robust cash flow. Article Title
• Neutral Sentiment: Piper Sandler reaffirmed its neutral rating and set an $85 price target, slightly below the current share price, which may limit enthusiasm but does not change the longer-term earnings story. Article Title
• Neutral Sentiment: The company said it earns about $400 million a year from selling Russian LNG cargoes, but it also plans to exit its stake in the Arctic LNG 2 project in Russia, leaving some geopolitical exposure unresolved. Article Title

About TotalEnergies

TotalEnergies SE NYSE: TTE is a French multinational integrated energy company engaged across the full energy value chain. Founded in 1924 as Compagnie Française des Pétroles, the company grew through a series of mergers and expansions—most notably with Petrofina and Elf Aquitaine around the turn of the millennium—and rebranded to TotalEnergies in 2021 to reflect a broader focus on multiple energy sources. It is organized to operate across upstream and downstream activities while pursuing a transition toward lower-carbon energy solutions.

In upstream, TotalEnergies explores for and produces crude oil and natural gas globally.

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