A few words about TotalEnergie’s history
Total was created in 1924 under the name of French oil company (CFP) with the original aim of exploiting French oil fields. Over the years, the Total group has expanded its activities internationally by buying up shares in foreign companies connected to oil. IN 1985the group changes its name to stay Total.
Total is a company that is present in the entire chain of the oil and gas industry. She is involved inexploration and in production of oil and gas as well as i refiningthere distribution and marketing oil and chemical products.
The front environmental challenges and the need for reduce the emission of greenhouse gases, Total has taken significant steps to engage in the energy transition and has started by changing its name again. More recently, Total has been called TotalEnergies.
For several years, TotalEnergies has increased its investments in renewable energy, especially in‘solar powerI’wind and liquid natural gas (LNG).
By changing its name, TotalEnergies is also committed to reducing its carbon footprint by developing CO2 capture and storage technologies and improving the energy efficiency of its operations and its various activities around the world.
Total activity
Total’s activity is very diversified and can be summarized in 4 main points :
- Refining and chemicals
Total possesses And utilizes refineries around the world convert crude oil into refined petroleum products such as gasoline, diesel, fuel oil and kerosene. These products are then distributed through a network of service stations and with many partner stores. Total is also active in the distribution of fuels for aviation, maritime transport and various global industries.
- exploration and production
Total is committed toexploration and production oil and natural gas worldwide. The company looks for new hydrocarbon deposits, develops oil and gas fields and extracts resources. This activity includes exploration, production of crude oil and natural gas and distribution.
- Renewable energies
In response to energy challenges and the growing demand for less polluting energies, Total has developed a significant presence in renewable energy. The company invests in projects ofsolar power, windmill, hydraulic and off biogas. It also produces and markets liquefied natural gas (LNG), which is a cleaner alternative to traditional fuels. Total also develops activities in electricity, such as energy storage and electricity distribution networks.
A worldwide presence
In addition to having a more than diversified activity, the TotalEnergies group is present all over the world. Which makes it the world leader.
TotalEnergies and the competition
Despite a worldwide presence, here is a breakdown of TotalEnergies’ main competitors:
ExxonMobil is one of the largest companies oil companies And gas of the world. It operates in the exploration, production, refining and marketing of crude oil and oil products. In addition, ExxonMobil is also involved in research and development of advanced energy technologies.
Chevron is a large energy company and specializes inexploration and production of oil and natural gas. This group has operations in the refining and marketing of petroleum products and makes numerous investments in renewable energy.
Royal Dutch Shell is a multinational energy company that operates inexplorationthere productionTHAT refining and distribution of oil and natural gas. The group emphasizes the reduction of CO2 emissions and has also developed a significant presence in renewable energy.
As you can see, TotalEnergies is not the only group in the world that has started its energy transition.
Financial data and dividend
TotalEnergies is one of the companies the most valued of the CAC 40 and is one of the companies favorite French shareholders. Generally, investors invest in this company to speculate indirectly on the oil price as well as receiving yield with an attractive return.
For the year 2022, TotalEnergies achieved a turnover of 263 billion euros for a net margin of 7.8%.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Use of capital letters | 138,095 | 142,670 | 113 142 | 132,372 | 155,896 | 136,290 |
| ABOUT | 12.5x | 13.2x | -14.9x | 8.57x | 8:00 a.m | 5.81x |
| Turnover | 184 106 | 176,249 | 119,704 | 184,634 | 263 310 | 220 326 |
| EBITDA | 31,059 | 32 192 | 18,431 | 38,740 | 71,578 | 51,971 |
| Operating margin | 10.2% | 9.86% | 4.28% | 13.2% | 19.2% | 17.3% |
| Net result | 11,446 | 11,267 | -7,242 | 16,032 | 20,526 | 23,645 |
| Net profit | 6.22% | 6.39% | -6.05% | 8.68% | 7.80% | 10.7% |
| Free cash flow | 7,623 | 12,875 | 4,039 | 18,067 | 31,677 | 19,867 |
| FCF margin | 4.14% | 7.31% | 3.37% | 9.79% | 12.0% | 9.02% |
| Dividend/share | 2,520 | 1,940 | 2,680 | 2,640 | 3,670 | 2.86 |
TotalEnergies is known for paying a dividend generous. Interestingly, the dividend is paid in 4 installments, that is, every 3 months. In 2022, Total achieved significant profits and decided to pay a extraordinary dividend of €1 stock.
In general, the dividend is with the dividend more than 5%which is more than correct for a French company and eligible for PEA.
Total technical analysis
TotalEnergies is not considered a growth company, but rather a company that pays dividends to its shareholders with an attractive return.
Total share price
The share price has fallen 3% for 5 years, but it is quite normal because the company favors the distribution of dividends.
The oil sector has experienced strong growth following the arrival of covid-19, and in recent months the share price has fallen slightly. If your strategy is to invest in companies that pay dividends, you can invest in TotalEnergies without worrying about the share price.
If the share price falls, you will be able to buy more shares and have a higher return, and if the share price rises, the value of your portfolio will increase.
We advise you reinvest systematically the dividend you receive by, for example, buying new TotalEnergie shares.
Reasons to invest in TotalEnergies
Here are the reasons to invest in TotalEnergies:
- A commitment to the energy transition
TotalEnergies has set itself ambitious goals regarding reduction of carbon emissions and off Sustainable Development. The company will play an important role in the energy transition and in making the world of the future a better place.
- Attractive dividend
TotalEnergies is known for its dividend payments firm and for retain its shareholders. Dividends are ideal for generating passive income.
- Diversification of activities
TotalEnergies is not limited to fossil fuels such as oil. The group is also involved in energetic transition and invests significantly in renewable energyas solar powerI’wind and gas natural liquid (LNG). This diversification reduces dependence on fossil fuels and allows new opportunities to be exploited.
The reasons not to invest in TotalEnergies
- Increased competition in renewable energy
Although TotalEnergies made a fairly early commitment to renewable energy, it faces a significant competition. Many companies are positioning themselves on the clean energy market, which can reduce the group’s development and growth opportunities.
- Regulatory and political risks
Companies operating in fossil fuels and renewable energy are subject regulations strict and in constant development. Changes in policies, regulatory restrictions and environmental requirements could have a bad influence about TotalEnergie’s activities and profitability.
To take advantage of a tax advantage, we advise you to invest in TotalEnergies for one Share savings plan (PEA). PEA allows you to invest in companies French And European and to open one you must be French tax resident.
If you do not live in France and you are not eligible for a PEA, you can open one Ordinary securities account (CTO), which gives you the opportunity to invest in companies in Worldwide.
Our opinion on this oil giant
TotalEnergies has good development opportunities with renewable energies and fits perfectly in a portfolio for long term oriented on yield.
There is a lot of activity in the group diversified and Total is known for retain its shareholders with a generous dividend.
