TotalEnergies (NYSE:TTE) Releases Quarterly Earnings Results, Misses Expectations By $0.13 EPS

TotalEnergies (NYSE:TTE) announced its earnings results on Thursday. The company reported $2.68 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.81 by ($0.13), Zacks reports. The company had revenue of $57.10 billion for the quarter, compared to the consensus estimate of $55.13 billion. TotalEnergies had a return on equity of 16.01% and a net margin of 8.29%.

Here are the key takeaways from TotalEnergies’ conference call:

• TotalEnergies reported strong Q2 results, with cash flow of about $9.8 billion and adjusted net income of $6.0 billion, supported by favorable oil, refining, LNG and power market conditions.
• The company’s upstream production grew more than 4% year over year excluding Middle East disruptions, and management said this was ahead of its full-year guidance. E&P cash flow also rose sharply, helped by new projects and strong operating performance.
• Refining, chemicals and marketing had an exceptional quarter as the company shifted refinery runs toward diesel and jet fuel, capturing historically strong margins. Marketing and Services delivered its best-ever quarter, while trading also contributed strongly outside of gas.
• Gas trading underperformed in Q2 because European gas prices fell instead of rising as expected, but management said the position has since improved and results could rebound in Q3. Integrated LNG was also hurt by Middle East-related disruptions, including lower Qatar output.
• TotalEnergies continued to reward shareholders and strengthen the balance sheet, cutting gearing to 13.1%, raising the interim dividend by 5.9%, and authorizing another $1.5 billion of buybacks for Q3. The company also kept CapEx at about $3.4 billion in the quarter, in line with its full-year investment plan.

TotalEnergies Stock Up 0.8%

Shares of TTE opened at $86.93 on Friday. The company has a quick ratio of 0.85, a current ratio of 1.08 and a debt-to-equity ratio of 0.41. The company has a 50-day moving average price of $84.01 and a two-hundred day moving average price of $82.14. The stock has a market cap of $208.43 billion, a price-to-earnings ratio of 10.88, a P/E/G ratio of 3.08 and a beta of 0.14. TotalEnergies has a 12 month low of $57.39 and a 12 month high of $94.17.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on TTE. Kepler Capital Markets upgraded shares of TotalEnergies from a “reduce” rating to a “hold” rating in a report on Thursday, April 23rd. Morgan Stanley reissued an “overweight” rating on shares of TotalEnergies in a research report on Tuesday, May 12th. Weiss Ratings raised TotalEnergies from a “hold (c)” rating to a “buy (b-)” rating in a report on Friday, May 1st. TD Cowen lifted their price objective on TotalEnergies from $102.00 to $105.00 and gave the stock a “buy” rating in a report on Friday. Finally, Piper Sandler restated a “neutral” rating and set a $85.00 price objective on shares of TotalEnergies in a research report on Thursday. Eleven equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, TotalEnergies currently has a consensus rating of “Moderate Buy” and a consensus target price of $87.14.

Hedge Funds Weigh In On TotalEnergies

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sivia Capital Partners LLC boosted its stake in TotalEnergies by 17.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,136 shares of the company’s stock worth $315,000 after acquiring an additional 774 shares during the last quarter. Gotham Asset Management LLC grew its holdings in shares of TotalEnergies by 19.2% in the 4th quarter. Gotham Asset Management LLC now owns 4,659 shares of the company’s stock valued at $305,000 after buying an additional 751 shares during the period. Advyzon Investment Management LLC bought a new stake in shares of TotalEnergies in the 4th quarter valued at $287,000. Brown Brothers Harriman & Co. grew its stake in TotalEnergies by 135.0% in the fourth quarter. Brown Brothers Harriman & Co. now owns 4,227 shares of the company’s stock valued at $277,000 after acquiring an additional 2,428 shares during the period. Finally, Kovack Advisors Inc. grew its stake in TotalEnergies by 23.0% in the fourth quarter. Kovack Advisors Inc. now owns 4,198 shares of the company’s stock valued at $275,000 after acquiring an additional 785 shares during the period. Institutional investors own 16.53% of the company’s stock.

More TotalEnergies News

Here are the key news stories impacting TotalEnergies this week:

• Positive Sentiment: TotalEnergies reported second-quarter results that highlighted a 67%-68% jump in profit, driven by higher oil prices and strong refining/trading margins. The company also posted solid cash flow and reduced net debt, reinforcing balance-sheet strength. Reuters: TotalEnergies Q2 profit up 67% on higher oil price, strong refining margins
• Positive Sentiment: The board approved a second interim dividend of €0.90 per share, a 5.9% increase from last year, which should appeal to income-focused investors. Business Wire: Second interim dividend
• Positive Sentiment: Management said the company earned about $400 million annually from Russian LNG cargo sales, adding to near-term cash generation. Reuters: Russian LNG sales
• Positive Sentiment: TD Cowen raised its price target to $105 and kept a Buy rating, signaling further upside potential after the results. The Fly: TD Cowen price target increase
• Neutral Sentiment: One post-earnings note said Q2 earnings and sales missed estimates because lower production offset stronger cash flow and refining gains, so the market is balancing a mixed headline against better underlying profitability. Zacks: Q2 earnings and sales miss estimates
• Neutral Sentiment: Management also said it will exit its stake in the Arctic LNG 2 project in Russia, a strategic move that reduces exposure but may limit some future upside from that asset. Reuters: Exit Arctic LNG 2
• Negative Sentiment: Piper Sandler reiterated a Neutral rating with an $85 target, suggesting limited upside from current levels compared with more bullish analyst views. Benzinga: Piper Sandler rating

About TotalEnergies

TotalEnergies SE (NYSE: TTE) is a French multinational integrated energy company engaged across the full energy value chain. Founded in 1924 as Compagnie Française des Pétroles, the company grew through a series of mergers and expansions—most notably with Petrofina and Elf Aquitaine around the turn of the millennium—and rebranded to TotalEnergies in 2021 to reflect a broader focus on multiple energy sources. It is organized to operate across upstream and downstream activities while pursuing a transition toward lower-carbon energy solutions.

In upstream, TotalEnergies explores for and produces crude oil and natural gas globally.