Total’s 4Q16 performance
Total (TOT) posted its 4Q16 results on February 9, 2017. In this series, we’ll compare the 4Q16 numbers with the estimates and evaluate the company’s segmental performances. We’ll also look at Total’s stock performance, implied volatility, and analyst ratings after the 4Q16 results.
In 4Q16, TOT’s revenues of $42.3 billion surpassed Wall Street estimates. Its adjusted EPS (earnings per share) was $0.96, which was about 4.4% higher than the estimate of $0.92. It was also 9.0% higher than 4Q15.
Total’s 4Q16 earnings
In 4Q16, Total’s (TOT) net adjusted earnings rose 16.0% to $2.4 billion compared to 4Q15. The rise was due to higher operating earnings from upstream and downstream (refining and chemicals) segments, partly offset by a fall in earnings from its marketing segment.
Net adjusted operating earnings from its upstream segment rose from $0.75 billion in 4Q15 to $1.1 billion in 4Q16 due to a rise in oil prices. TOT’s downstream segment’s adjusted net operating income rose from $1.0 billion in 4Q15 to $1.1 billion in 4Q16. We’ll take a look at segmental performance in the next part.
Total’s peer Royal Dutch Shell (RDS.A) posted a 48.0% YoY fall in adjusted EPS in 4Q16. Total (TOT) and Shell (RDS.A) are part of the Euronext 100 Index, which is made up of large, liquid European companies. Oil and gas sector stocks have a ~13.0% weight in the index in terms of market capitalization.
The Euronext 100 closed 1.1% higher on February 9, 2017. TOT stock rose 1.1% that day since the company surpassed the estimates for 4Q16. We’ll look at Total’s stock performance later in the series.
Chevron’s (CVX) 4Q16 adjusted EPS was 19.0% lower than its 4Q15 adjusted EPS. But ExxonMobil’s (XOM) 4Q16 adjusted EPS was 34.0% higher than 4Q15. BP (BP) saw its earnings almost double in 4Q16 over 4Q15.
If you’re looking for exposure to integrated energy stocks, you can consider the iShares US Energy (IYE). IYE has a ~39.0% exposure to the sector.