TotalEnergies Posts Mixed Q2 Earnings On Softening Oil & Gas Environment, Plans $2B Share Buyback

TotalEnergies SE TTE reported Q2 2023 revenues of $56.3 billion, down 25% Y/Y, beating the consensus of $53.1 billion.

Hydrocarbon production fell 10% Y/Y to 2,471 kboe/d, with an 11% Y/Y decline in Exploration & Production and 5% Y/Y in Integrated LNG businesses.

Refinery and petrochemicals throughput declined 7% Y/Y to $1,472 kb/d.

Adjusted net operating income fell 47% Y/Y to $5.6 billion, on a decline of 50% Y/Y in Exploration & Production, 40% Y/Y in Integrated LNG, and 64% Y/Y in Refining & Chemicals businesses.

Adjusted EBITDA declined 41% Y/Y to $11.1 billion. 

Adjusted EPS fell 47% Y/Y to $1.99, missing the consensus of $2.22.

Cash flow from operations declined 39% Y/Y to $9.9 billion. 

Dividend: The company declared Q2 interim dividend per share of €0.74, up 7.25% Y/Y.

Repurchase: TTE authorized share repurchase of $2 billion in Q3 2023. 

Outlook: For Q3 2023, the company anticipates hydrocarbon production of around 2.5 Mboe/d, aided by the start-up of Absheron field in Azerbaijan, with an expected utilization rate in refineries above 80%.

The company anticipates the average LNG selling price in Q3 to be within $9 and $10/Mbtu.

For 2023, TTE reaffirmed net investments of $16 billion-$18 billion, including $5 billion in low-carbon energies.

Also Read: TotalEnergies Inks Deal To Decarbonize Its European Refineries

As part of the implementation of its multi-energy strategy, the company also announced four major projects this quarter: - the launch of its multi-energy GGIP project in Iraq, the launch of the RGLNG project in Texas, which will boost its LNG export capacity from the US to 15 Mt/y, - the completion of the acquisition of 100% of Total Eren in renewable electricity, the award of the EPC contracts for the Amiral petrochemical project in Saudi Arabia.

Related: TotalEnergies Joins Hand With Petronas For Renewable Energy Projects In Asia-Pacific

Price Action: TTE shares are trading higher by 0.95% at $60.28 on the last check Thursday.