TotalEnergies Posts Mixed Q2 Earnings On Softening Oil & Gas Environment, Plans $2B Share Buyback
Portfolio Pulse from Lekha Gupta
TotalEnergies SE (NYSE: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, with declines in Exploration & Production and Integrated LNG businesses. Adjusted net operating income fell 47% Y/Y to $5.6 billion. The company declared Q2 interim dividend per share of €0.74, up 7.25% Y/Y and authorized a share repurchase of $2 billion in Q3 2023. For Q3 2023, the company anticipates hydrocarbon production of around 2.5 Mboe/d.
July 27, 2023 | 9:42 am
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
TotalEnergies reported a 25% Y/Y decrease in Q2 2023 revenues, but beat the consensus. The company also reported declines in hydrocarbon production and net operating income. However, it declared an increased interim dividend and authorized a $2 billion share repurchase in Q3 2023.
Despite the decrease in revenues and production, TotalEnergies beat the consensus estimate, which could be seen as a positive sign by investors. The increase in the interim dividend and the authorization of a $2 billion share repurchase could also be seen as positive signs, potentially offsetting the negative impact of the declines. Therefore, the short-term impact on the stock price is likely to be neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100