TotalEnergies' Q1 Earnings Miss Estimates, Revenues Decline Y/Y

Core Viewpoint TotalEnergies SE reported a decline in operating earnings and total revenues for the first quarter of 2025, while hydrocarbon production increased year over year, driven by new start-ups and existing asset ramp-ups. Financial Performance - Operating earnings for Q1 2025 were $1.83 per share, missing the Zacks Consensus Estimate of $1.88 by 2.65% and down 3.7% from $1.90 in the previous year [1] - Total revenues were $47.89 billion, an 8% decline from $51.88 billion year-over-year, but exceeded the Zacks Consensus Estimate of $45.5 billion by 5.3% [1] Production Details - Hydrocarbon production averaged 2,568 thousand barrels of oil equivalent per day, up 4% year over year, surpassing the guided range of 2,500-2,550 thousand barrels [2] - Liquid production averaged 1,516 thousand barrels per day, a 2% increase year over year, while gas production was 5,655 thousand cubic feet per day, up 8% year over year [3] Pricing Information - The realized price for Brent crude decreased by 9% to $75.7 per barrel from $83.2 a year earlier [4] - Average realized liquid price was $72.2 per barrel, down 8% year over year, while realized gas prices increased by 29% to $6.6 per thousand British thermal units [4] Operational Highlights - Net power production was 11.3 terawatt hours, an 18% increase year over year, with 60.2% generated from renewable sources [5] - Net operating income fell to $4.79 billion, down 14% year over year due to lower realized oil prices and refining margins [5] Shareholder Actions - The company repurchased 33.3 million shares for $2 billion in Q1 2025 [6] Segment Performance - Exploration & Production's operating earnings were $2.45 billion, down 4% from the previous year [7] - Integrated LNG's operating income was $1.43 billion, down 1.6% year over year [7] - Integrated Power's operating income decreased by 17% to $506 million, while Refining & Chemicals saw a 69% decline to $301 million [8] Financial Position - Cash and cash equivalents as of March 31, 2025, were $22.83 billion, down from $25.84 billion at the end of 2024 [9] - Cash flow from operating activities increased by 18% year over year to $2.56 billion [9] Future Guidance - TotalEnergies expects a 2-3% year-over-year improvement in production volumes for Q2 2025, although planned maintenance may impact production [10] - The company plans to invest between $17 billion and $17.5 billion in 2025, with $4.5 billion allocated to low carbon energies [10]