TotalEnergies (TTE) Drops on Missing Estimates; Boosts Dividends
Global Markets

TotalEnergies (TTE) Drops on Missing Estimates; Boosts Dividends

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French energy major TotalEnergies reported lower income for Q4 and the full year 2023 due to a huge drop in oil and gas prices.  

Shares of French oil and gas major TotalEnergies SE (FR:TTE) dropped 3.2% yesterday after missing fourth-quarter estimates. TTE posted a 31% year-over-year decline in Q4 2023 adjusted net income to $5.23 billion, owing to the significant fall in oil and gas prices compared to 2022. Adjusted earnings per share (EPS) came in at $2.16, down 27% year-over-year. Also, adjusted EBITDA fell 27% compared to Q4 FY22, with total production declining by 12% year-over-year to 2.462 million barrels per day (bpd).

On a positive note, TTE’s board proposed an increased dividend of €3.01 per share for Fiscal 2023, up 7.1% annually. Plus, TTE aims to increase its interim dividend for H1 FY24 by 6.8% to €0.79 per share and repurchase $2 billion worth of shares in the first quarter.

Further Details About TTE’s Results

For the full year Fiscal 2023, adjusted net income dropped 36% to $23.18 billion. This led to a 33% fall in adjusted EPS to $9.40.

Turning toward revenues, for Q4, the figure declined 14% year-over-year to $54.76 billion, and for Fiscal 2023, the number was down 17% to $218.95 billion. The company and its peers are facing multiple challenges, including geopolitical tensions, stringent OPEC+ policies, and a steep decline in oil and gas prices from the heights seen in 2022.

TotalEnergies CEO Patrick Pouyanne noted that the company is progressing toward its energy transition goals by maintaining a balance between oil and gas, LNG, and integrated power projects. Looking ahead, Pouyanne said that he expects production tensions to remain as macro headwinds continue. TTE expects to make net investments in the range of $17-$18 billion this year, with $5 billion allocated to the Integrated Power segment.

Is TotalEnergies a Buy?

Following TotalEnergies’ results, four analysts reiterated their Buy ratings on TTE stock and kept their price targets intact. Of these analysts, Barclays analyst Lydia Rainforth has the highest price target of €99.00 for TTE stock, implying 69.2% upside potential.

Overall, with 11 Buys versus four Hold ratings, TTE stock has a Moderate Buy consensus rating on TipRanks. The TotalEnergies SE share price forecast of €74.01 implies 26.5% upside potential from current levels.



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