TotalEnergies Q3 Earnings Miss Estimates, Revenues Down Y/Y

Core Insights - TotalEnergies SE reported third-quarter 2024 operating earnings of $1.74 per share, missing the Zacks Consensus Estimate of $1.84 by 5.4%, and reflecting a 33.8% decline from the previous year's $2.63 per share due to lower refining margins and decreased oil prices [1] Financial Performance - Total revenues for the third quarter were $47.43 billion, down 12.8% from $54.41 billion in the same quarter last year [2] - Net operating income was $4.64 billion, a decrease of 31.9% year over year, attributed to lower refining margins [7] - Cash and cash equivalents as of September 30, 2024, were $25.67 billion, compared to $24.73 billion a year earlier [11] Production and Operations - Hydrocarbon production averaged 2,409 thousand barrels of oil equivalent per day, down 2.7% year over year, influenced by security-related disruptions in Libya and a natural gas decline [3] - Liquid production averaged 1,466 thousand barrels per day, down 6.1% year over year, while gas production increased by 3.5% to 5,093 thousand cubic feet per day [4] Pricing and Margins - The realized price for Brent crude fell 7.4% to $80.3 per barrel from $86.7 a year ago, while the average realized liquid price decreased by 2.4% to $77 per barrel [5] - Realized gas prices increased by 5.7% year over year to $5.78 per thousand British thermal units [5] Segment Performance - Exploration & Production's operating earnings were $2.48 billion, down 20.9% from $3.14 billion in the prior year [9] - Integrated LNG's operating income was $1.06 billion, down 20.8% from $1.34 billion [9] - Refining & Chemicals' operating income plummeted 82.8% to $0.24 billion from $1.40 billion in the previous year [9] Strategic Initiatives - TotalEnergies is focusing on a multi-energy strategy, emphasizing renewable energy, and has commenced production from high-margin projects in the U.S. and Argentina [6] - The company aims for a production growth target of 3% per year through 2030, supported by new projects [6] Shareholder Returns - The company repurchased 29.3 million shares for $2 billion in the third quarter and a total of 88.1 million shares for $6 billion in the first nine months of 2024 [8] Guidance - TotalEnergies expects fourth-quarter 2024 hydrocarbon production to be in the range of 2,400-2,450 thousand barrels of oil equivalent per day, considering the end of disruptions in Libya and the start-up of the Mero-3 project in Brazil [12]