FINWIRES · TerminalLIVE
FINWIRES

RBC Tweaks Model for TotalEnergies After 'Solid' Q1 Performance; Outperform Rating Kept

By

RBC Capital Markets revised its model for TotalEnergies (TTE.PA, TTE.L), adjusting earnings forecasts for the French energy giant following a "solid set of numbers" for the first quarter, noting minor beats across divisions.

"Despite the Middle East outages, which will be more impactful in Q2, TTE's Integrated model benefited across oil, gas and power. The closure of the EPH deal is also a big milestone for the Power business. We continue to like TTE for its resource hopper and diversified growth trajectory to 2030 and beyond. It remains on RBC's Global Energy Best Ideas list and we maintain our Outperform rating," analysts said Wednesday, noting they also kept the stock's price target at 85 euros.

Against this backdrop, the research firm lowered its full-year 2026 EPS forecast by 2% due to the expected impact of sustained disruptions in the Middle East, which outweighs gains in power and marketing services. On the other hand, the early closure of the EPH deal bolstered RBC's earnings expectations for the power division, with 2027 and 2028 EPS projections increasing by 1%.

While the research firm sees upside potential for shareholder distribution, analysts expect buybacks to remain flat at $1.5 billion heading into the third quarter, followed by an increase to $2 billion in the next three-month period, as TotalEnergies is expected to prioritize its balance sheet amid a volatile macroeconomic landscape.

Related Articles

Equities

BP Signs Offshore Gas Exploration Pact With Venezuela

BP (BP) has signed an agreement with Venezuela to explore offshore natural gas, as the country's energy sector gathers momentum following the US capture of Nicolas Maduro in January, Bloomberg reported on Wednesday.The memorandum of understanding between BP and Caracas outlines "potential areas for co-operation in material gas and future exploration," the company said.The agreement comes amid renewed interest from international energy companies in Venezuela, with an energy conference in Caracas drawing strong participation from global investors.For BP, the move aligns with Chief Executive Meg O'Neill's strategy to rebuild long-term reserves as the company pivots back toward oil and gas after scaling back several low-carbon efforts in recent years.

$BP
Equities

African Oil Producers Push To Keep Drilling At Fossil Fuel Phaseout Talks

Oil-rich African nations said they will continue drilling to support economic growth, despite global efforts to phase out fossil fuels, AFP reported from ongoing talks in Colombia.Officials from several producers argued that a rapid transition away from oil and gas is not feasible given their reliance on fossil fuel revenues."Not phasing out - phase down. That is the message," said Onuoha Magnus Chidi, an adviser to Nigeria's regional development minister, to AFP.Delegates warned that an abrupt shift could lead to job losses and economic disruption, calling for financial support and policy flexibility to help manage the transition, AFP said.

Equities

Earnings Flash (CVI) CVR Energy Posts Q1 Sales $1.98 Billion, vs. FactSet Est of $1.73 Billion

$CVI