TotalEnergies, the French oil-and-gas major, is set to release its third-quarter financial results on Thursday. Here are the key details you should know:
Profit Forecast
According to a consensus compiled by FactSet, TotalEnergies is expected to report a net profit of $6.67 billion for the quarter, compared to $6.63 billion in the same period last year. On an adjusted basis, net profit is projected to be $6.18 billion, down from $9.86 billion in the previous year.
Production Forecast
FactSet’s consensus suggests that TotalEnergies’ quarterly hydrocarbon production will reach approximately 2.49 million barrels of oil equivalent per day, in line with the company’s own expectations. This compares to production of 2.67 million barrels of oil equivalent per day in the third quarter of 2022.
Areas of Focus
Growth Drivers
Analysts at Citi and RBC Capital Markets expect TotalEnergies’ third-quarter results to be supported by lower taxes in the company’s core upstream business, as well as improved performance in the integrated gas and power segments. Refining margins are also expected to contribute positively to the return on equity.
Strategy
RBC Capital Markets analysts do not anticipate any updates on TotalEnergies’ strategic plans in the upcoming results announcement. The company recently held a capital markets day and already has a well-established shareholder returns plan in place.
M&A Activity
Given the recent announcement of significant transactions by U.S. super major peers, there may be questions during the conference call about TotalEnergies’ M&A activities. However, the analysts believe that TotalEnergies is unlikely to pursue deals on a similar scale.
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