TotalEnergies Misses Q1 Earnings But Lifts Dividend, Plans $2 Billion Buyback

TotalEnergies SE TTE shares are trading lower on Wednesday after the company reported first-quarter adjusted EPS of $1.83, down 15% year over year (Y/Y), and missed the consensus of $1.88.

Sales of $52.25 billion topped the consensus of $44.91 billion.

Hydrocarbon production rose 4% Y/Y to 2,558 kboe/d in the quarter, aided by start-ups and ramp-ups (+4%) and positive portfolio effect from acquisitions (+3%), partly offset by lower availability of production facilities (-1%) and natural field declines (-2%).

Also Read: TotalEnergies Inks 20-Year LNG Deal With NextDecade, Awaits Key Investment Decision

Apart from this, the company experienced flat year-over-year (Y/Y) production in the Exploration & Production segment and an 18% Y/Y increase in Integrated LNG businesses.

Adjusted operating income fell 4% Y/Y to $2.45 billion in Exploration & Production, up 6% Y/Y to $1.29 billion in Integrated LNG, down 17% Y/Y to $506 million in Integrated Power and rose 69% Y/Y to $301 million in Refining & Chemicals segments.

Adjusted EBITDA in the quarter stood at $10.5 billion, down 9% Y/Y.

Operating cash flow was $2.56 billion, a 18% year-over-year increase, in the quarter.

Dividend: TotalEnergies plans to propose the first interim dividend of €0.85/share for 2025, a 7.6% increase from 2024.

Buyback: TotalEnergies planned a share buyback of up to $2 billion for the second quarter, despite a weak pricing environment with Brent below $70/b since the beginning of April and an uncertain geopolitical and macroeconomic environment.

Outlook: For the second quarter of FY25, the company anticipates hydrocarbon production to 2% to 3% Y/Y, with an impact from more planned maintenance than during the first quarter of 2025 (50 kboe/d) and second quarter of 2024.

The company anticipates the average LNG selling price to be between $9 and $9.5/Mbtu in the second quarter of 2025.

For FY25, the company expects net investments of $17 billion to $17.5 billion.

Investors can gain exposure to the stock via FT Energy Income Partners Strategy ETF EIPX and GMO International Value ETF GMOI.

Price Action: TTE shares were down 2.5% at $57.02 at last check Wednesday.

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