Shares of TotalEnergies (TTE) fell slightly in premarket trading Wednesday after the company reported a year-over-year drop in earnings amid lower oil and gas prices, as well as shrinking refining margins.
The French energy titan also hiked dividends and continued its share repurchase program.
Shares fell 1% in Wednesday’s trading session in Paris.
TotalEnergies reported an adjusted earnings per share (EPS) of $2.16 for Q4, falling below the previous year's figure of $2.97 and slightly under the estimate of $2.27.
The company's revenue stood at $54.77 billion, marking a 14% decline year-over-year but surpassing the forecast of $50.09 billion.
Its adjusted net income reached $5.23 billion, down 31% from last year and below the estimated $5.66 billion. The adjusted EBITDA came in at $11.70 billion, a 27% decrease from the previous year, slightly missing the estimate of $11.75 billion.
In its exploration and production segment, TotalEnergies posted an adjusted net operating income of $2.80 billion, which is a 21% decline year-over-year but marginally above the estimate of $2.79 billion.
The refining and chemicals segment saw an adjusted net operating income of $633 million, a significant 57% drop from last year and below the forecast of $808.9 million.
The energy firm’s debt-adjusted cash flow was reported at $8.53 billion, experiencing an 8.9% decrease from the previous year and slightly below the estimate of $8.75 billion.
Cash flow from operations showed a notable increase to $16.15 billion from $5.62 billion the previous year, significantly exceeding the estimate of $9.02 billion.
Production was reported at 2.46 million barrels of oil equivalent per day (boe/d), a 12% decrease year-over-year, aligning with the estimate of 2.46 million.
Meanwhile, TotalEnergies announced its plan to pay out a total 2023 dividend of 3.01 euros ($3.24) per share, marking a 7.1% rise from the previous year. For 2023, the firm has recommended a final interim dividend of 0.79 euros per share.
Furthermore, the company aims to distribute over 40% of its operational cash flow, excluding changes in working capital, to its shareholders by 2024. This commitment includes raising interim dividends by 6.8% to 0.79 euros per share and executing share repurchases worth $2 billion in the first quarter of 2024.
Going forward, TotalEnergies expects Q1 production above 2.4 million boe/d, missing the consensus projection of 2.48 million boe/d
The company expects to invest $17 billion to $18 billion this year, and sees its refining utilization rate rising above 85%.