TotalEnergies (NYSE:TTE) Releases Earnings Results, Hits Expectations

TotalEnergies (NYSE:TTE) issued its quarterly earnings results on Thursday. The company reported $2.68 EPS for the quarter, hitting analysts’ consensus estimates of $2.68, Zacks reports. The company had revenue of $57.10 billion for the quarter, compared to analysts’ expectations of $55.13 billion. TotalEnergies had a return on equity of 14.01% and a net margin of 7.43%.

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 Trading Up 1.8%

NYSE TTE traded up $1.53 during trading hours on Thursday, reaching $86.44. The company’s stock had a trading volume of 2,745,719 shares, compared to its average volume of 1,806,771. The firm has a fifty day simple moving average of $84.22 and a 200-day simple moving average of $81.96. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.08 and a quick ratio of 0.85. TotalEnergies has a 52 week low of $57.39 and a 52 week high of $94.17. The stock has a market cap of $207.26 billion, a P/E ratio of 12.81, a P/E/G ratio of 3.02 and a beta of 0.14.

Key TotalEnergies News

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

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Wall Street Zen lowered shares of TotalEnergies from a “buy” rating to a “hold” rating in a report on Saturday, July 4th. Mizuho initiated coverage on shares of TotalEnergies in a research report on Monday. They set an “outperform” rating and a $103.00 price target on the stock. Zacks Research cut shares of TotalEnergies from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 25th. CICC Research assumed coverage on shares of TotalEnergies in a research report on Tuesday, June 23rd. They set an “outperform” rating for the company. Finally, Weiss Ratings raised TotalEnergies from a “hold (c)” rating to a “buy (b-)” rating in a report on Friday, May 1st. Eleven research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $86.00.

Hedge Funds Weigh In On TotalEnergies

A number of hedge funds have recently modified their holdings of TTE. AQR Capital Management LLC lifted its position in shares of TotalEnergies by 151.0% in the 1st quarter. AQR Capital Management LLC now owns 67,461 shares of the company’s stock worth $4,364,000 after purchasing an additional 40,586 shares during the period. Empowered Funds LLC raised its stake in TotalEnergies by 2.1% during the first quarter. Empowered Funds LLC now owns 40,988 shares of the company’s stock worth $2,652,000 after buying an additional 835 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in TotalEnergies by 17.7% in the second quarter. Sivia Capital Partners LLC now owns 5,136 shares of the company’s stock valued at $315,000 after buying an additional 774 shares during the period. Russell Investments Group Ltd. raised its position in shares of TotalEnergies by 14.9% in the 2nd quarter. Russell Investments Group Ltd. now owns 24,274 shares of the company’s stock worth $1,490,000 after acquiring an additional 3,151 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in shares of TotalEnergies by 7.3% in the 2nd quarter. Invesco Ltd. now owns 198,215 shares of the company’s stock valued at $12,168,000 after purchasing an additional 13,536 shares during the period. Institutional investors and hedge funds own 16.53% of the company’s stock.

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.