Integrated oil and gas company
) reported fourth-quarter 2013 operating earnings of $1.48 per
share (€1.08 per share), falling short of the Zacks Consensus
Estimate by 3.9%. Operating earnings of the company were 14.9%
lower than the year-ago earnings of $1.58 (€1.19 per share).
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Total's 2013 operating earnings were $6.28 per share (€4.73 per
share), down 10% from $6.96 per share (€5.42 per share) reported
in 2012. Earnings were also short of the Zacks Consensus Estimate
of $6.46 by 2.9%.
Total revenue in the reported quarter was $64.99 billion (€47.75
billion), up 1% from $64.66 billion (€49.86 billion) in the
In 2013, total revenue of $251.73 billion (€189.54 billion) was
down 2% from $257.03 billion (€200.06 billion) in 2012. Revenue
for the year also missed the Zacks Consensus estimate of $264.8
billion by 4.9%.
Production and Reserve
Total hydrocarbon production during 2013 averaged 2,299 thousand
barrels of oil equivalent (kboe) per day, flat with 2012 levels.
Start-up and new projects added 2.5% to total production, while
normal decline from projects, portfolio changes and security
issues in Nigeria and Libya totally offset the benefits derived
from the new startups.
In 2013, liquids production averaged 1,167 thousand barrels
(MBbls) per day, down 4% from the prior year. Liquid production
got a beating in Africa, South America and Asia-Pacific, which
pulled down the overall output.
Gas production during the year was 6,184 thousand cubic feet
(Mcf) per day, up 5% year over year. Strong performance from the
Middle East and CIS region more than offset the drop in gas
production in South America and Europe.
TOTAL continued with its aggressive exploration & production
activities in 2013. The company exited 2013 with a reserve
replacement rate of 119%. Hydrocarbon reserves at the end of 2013
were 11,526 thousand Boe (Mboe), increasing 1% from last year.
In 2013, the realized price for Brent decreased 3% to $108.7 per
barrel from $111.7 per barrel in 2012. The average realized
liquid price down 4% to $103.3 [per barrel from $107.7 per barrel
Realized gas prices in 2013 increased 6% year over year to $7.12
per Mbtu. Realized hydrocarbon prices in 2013 decreased to $74.8
per barrel of oil equivalents (boe) from $77.3 per boe in 2012.
Cash and cash equivalents as of Dec 31, 2013, were $19.4 billion
(€14.64 billion) versus $20.4 billion (€15.46 billion) at 2012
The net debt-to-equity ratio was 23.3% at the end of 2013 versus
21.9% at the end of 2012.
TOTAL's cash flow from operation at the end of 2013 was $28.5
billion (€21.47 billion), down 4.0% from $27.19 billion in 2012.
The decline was primarily due to a fall in net income.
Net cash flow in 2013 was $2.6 billion (€1.9 billion) versus $6.9
billion ((€5.4 billion) in 2012. The company has invested
substantially in development projects during 2013, which impacted
the net cash flow of the company.
Sale and Purchase of Assets
During 2013, TOTAL acquired assets worth $4.5 billion (€3.4
billion). The investments included interest in the Libra field in
Brazil, an additional stake in the Ichthys project in Australia,
a 1.6% additional interest in Novatek, carry agreement in the
Utica basin in the U.S. and acquisition of exploration permits in
Brazil, South Africa and Mozambique.
In 2013, TOTAL disposed of assets worth $4.7 billion (€3.6
billion), comprising the sale of its 25% interest in the Tempa
Rossa field in Italy, interest in the Voyageur upgrader project
in Canada, and the exploration and production assets in Trinidad
TOTAL has a goal of divesting assets worth $15 billion to $20
billion in the 2012-2014 time period. The idea was to reshape its
existing portfolio and unlock maximum value of its worldwide
TOTAL's net investment in 2013 was $28.3 billion, up .9% from
$22.2 billion in 2011 due to heavy investments in diverse
TOTAL's organic capital expenditure for 2014 is projected at $26
billion, 7% lower than the 2013 level. Like the previous year, a
major portion of 2014 expenses will be directed towards the
company's upstream projects.
The exploration budget for 2014 is at $2.8 billion, with new
drilling planned in the Ivory Coast, Angola, South America,
Indonesia, Malaysia and Russia.
Other Company Releases
) reported fourth quarter earnings of 56 cents per share, down
12.5% from the Zacks Consensus Estimate.
) reported fourth quarter earnings of $1.91 per share, down 0.5%
from the Zacks Consensus Estimate.
) reported fourth quarter earnings of 90 cents, down 1.1% from
the Zacks Consensus Estimate.
It is now an open secret that LNG's usage on a global scale will
increase as we move forward. We expect TOTAL to take advantage of
the increase in demand of natural gas by leveraging its existing
assets and adding more gas assets to its portfolio.
In the recently concluded quarter TOTAL acquired exploration
permits in offshore blocks in Oman and Malaysia and shale gas
acreage in the UK.
Management at TOTAL also decided to increase its quarterly
dividend to 83 cents (€0.61 per share) from 80 cents (€ 0.59 per
share) earlier. We appreciate this shareholder friendly move and
expect an even higher rate of dividend once the recent
investments begin to pay off.
TOTAL currently has a Zacks Rank #4 (Sell).