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Analysis of TotalEnergies share price

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Since 2021, the Total group has changed its name following a refocusing of its activities in the field of renewable energy and is now called TotalEnergies. If you want to buy or sell this stock on the stock market, we are going to allow you, through this article, to discover all the information and data you will need to carry out precise analyses of this stock and its price. We will look at the best way to carry out a fundamental analysis of this stock with a list of the elements and publications that you should follow in the news. We will then explain who this group is and what its main activities and sources of income are. We will also take you through its main competitors and recent partnerships. Finally, we will present the strengths and weaknesses of this group and therefore the advantages and disadvantages of this stock.

Latest news

TotalEnergies share dividend and yield

09/05/2022 - 13h10

Discover the amount of TotalEnergies (ex Total) dividend, its current yield, its history and the next ex-dividend and payment dates

Elements that can influence the price of this asset:

Analysis N°1

First of all, given that the TotalEnergies group is still very present in the fossil fuel market, you will have to pay close attention to the commodities market and, more specifically, to the price of crude oil and natural gas, which will have an impact on the profitability of these branches of the group.

Analysis N°2

Similarly, the foreign exchange market should be monitored closely. Indeed, the group's activities are also influenced by certain exchange rates and in particular the EUR/USD exchange rate.

Analysis N°3

From a strategic point of view, it is important to take note of the roadmap communicated by TotalEnergies to its shareholders. The strategic development plans detail the objectives and future operations envisaged by the group with the aim of reducing costs and diversifying its activities, as well as the targeted figures for the current year and the following years.

Analysis N°4

The operations carried out by the TotalEnergies group with the aim of continuing the transition of its activities towards renewable energies should be followed with the same attention. This will involve the creation of partnerships and acquisitions of companies in this sector, or even the disposal of less promising activities.

Analysis N°5

In the context of this fundamental analysis of the TotalEnergies share, it is important to keep an eye on the competition, as the other major global oil companies have almost all begun the same transition as TotalEnergies and are therefore likely to position themselves strongly in the same segments in the years to come.

Analysis N°6

The energy market as a whole will also have to be studied with interest and we will keep a close eye on the various regulatory developments concerning the consumption of fossil fuels and renewable energies by monitoring the way in which TotalEnergies will position itself according to the decisions taken.

Analysis N°7

Finally, before buying or selling, one should of course carry out a good analysis of the group's financial results, which are published each year and each quarter, making sure to compare them with both analysts' expectations and the data communicated in the strategic plans.

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General presentation of TotalEnergies

It goes without saying that in order to buy or sell a stock on the stock market, you must first of all know the company that issues these securities. This is why we are now offering you a complete presentation of the TotalEnergies group with details of its activities and its main sources of income. This presentation will give you a better understanding of the group's environment and sector and its growth opportunities.

TotalEnergies SE, formerly known as Total, is a French energy company. More specifically, the group is one of the world's leading producers and sellers of oil, but has also recently diversified into other energies, including green energy.

To better understand the activities of the TotalEnergies group, it is possible to divide them into different divisions according to the share of turnover they generate and in this way:

  • First of all, refining and chemicals still represent a large part of TotalEnergies' activities with 40.2% of turnover. These activities include the refining of petroleum products with the operation of 17 refineries around the world as well as the manufacture of basic chemicals such as olefins, aromatics, polyethylenes or fertilisers and speciality products such as rubber, resins or adhesives. It should also be remembered that the group is also active in the trading and shipping of crude oil and various petroleum products.
  • Another large part of the group's activities concerns the distribution of petroleum products. It generates 45.1% of the group's turnover with the operation of 15,594 service stations throughout the world.
  • Next are the electricity generation activities, which account for 11.1% of the company's turnover. These activities concern combined gas and renewable energy power stations. It should also be noted here that the group is developing activities in the transport, storage and sale of natural gas, liquefied natural gas, liquefied petroleum gas and coal.

Finally, the remaining 3.5% of turnover comes from hydrocarbon exploration and production activities. The group produces nearly 2.9 million barrels of oil equivalent per day. Knowing the geographical distribution of the TotalEnergies group's revenues is also essential for analysing this stock. We know that the group generates 23.3% of its turnover in France, 47.8% in the rest of Europe, 11.4% in Africa, 9.4% in North America and 8.1% in the rest of the world.

Analysis of TotalEnergies share price
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The major competitors of TotalEnergies

Now that you have a good knowledge of the TotalEnergies group and its activities, we suggest that you discover its sectoral environment. Indeed, it is also essential to follow the news and results of its competitors before taking a buy or sell position on this stock. Here is a presentation of TotalEnergies' main rivals at present.

ExxonMobil Corporation

First of all, the ExxonMobil group, which is an American oil and gas company, is of course one of TotalEnergies' biggest competitors. It is also one of the largest companies in the world in terms of turnover. Its share price is listed on the NYSE and it is one of the oil supermajors. A special feature of this group is that its oil and gas fields are currently the largest reserves for a private company.

Shell

Another company to watch is Royal Dutch Shell Petroleum, which is an Anglo-Dutch oil company and one of the largest multinationals in the world. More precisely, this company is actually a group of companies owned directly or indirectly by the parent company Royal-Dutch Shell plc. The size of the group is also significant, as Shell is the third largest company in the world in terms of turnover. It is also the second largest group in its industry, also in terms of turnover. However, Shell is also involved in the global warming controversy as the company spends an average of $49 million each year on lobbying to curb environmental measures. It is also one of the largest emitters of greenhouse gases in the industry.

Sinopec

Also known as China Petroleum and Chemical Corporation, Sinopec is a Chinese oil and chemical group. This group is a serious competitor to TotalEnergies as it is also one of the world's largest companies in terms of turnover.

BP

Another oil supermajor in direct competition with TotalEnergies is, of course, BP, a British company involved in the exploration, extraction, refining and sale of oil. It was formerly known as Anglo-Persian Oil Company, then Anglo-Persian Oil Company, British Petroleum Company and BP Amoco before finally taking its final name of BP. The BP Group also became the largest company in the UK following its merger with Amoco, Atlantic Richfield and Burmah Castrol and is also the third largest oil company in the world. In addition, the group has a very strong international presence, operating in around 100 countries and employing around 79,700 people.

Saudi Aramco

Of course, you should also be interested in Saudi Aramco, which is also known by its official name of Saudi Arabian Oil Company and is the Saudi national oil company. Indeed, this company currently owns almost all of the kingdom's hydrocarbon resources and is the world's largest oil company in terms of production. Currently, the group's headquarters are based in Dhahran, in the east of the country, and it operates the world's largest oil field, which is based in Ghawar.

Chevron Corporation

Finally, of course, you also have to consider the competition from the Chevron Corporation group, which is the second largest oil company in the US after ExxonMobil. It is also the sixth largest in the world. The group is based in California and operates in over 180 countries. It is active in the various branches of the oil and gas industry with exploration and production, refining, sales and transportation as well as chemical manufacturing and power generation. The company is also listed on the New York Stock Exchange and has been included in the Dow Jones Industrial Average since 2008.


The major partners of TotalEnergies

As we have just seen, the TotalEnergies group has many opponents in its sector. However, it can also count on some important allies in its strategy, as the two examples of strategic partnerships below show.

Stellantis

Firstly, and in 2021, the TotalEnergies group announced the renewal and extension of an existing partnership with the Stellantis group, which was formed from the merger of the PSA and Fiat Chrysler groups. The partnership, which covered the Peugeot, Citroën and DS Automobiles brands, has been renewed for a further five years, but the two groups have also decided to extend the partnership to include the Opel and Vauxhall brands. The new global agreement will focus on several key areas, starting with research and development and common objectives in terms of sustainable development and innovation in new mobility, low-carbon or bio-based fuels, lubricants and optimised fluids for new electrified engines and their components such as batteries. In particular, TotalEnergies will supply original equipment lubricants for vehicles produced in the plants of the five Stellantis automotive brands concerned worldwide. In addition, Total Quartz lubricants will be recommended in the after-sales and maintenance networks of Peugeot, Citroën, DS Automobile, Opel and Vauxhall.

Greeen Investment Group

Also in 2021, the TotalEnergies group announced the signing of a partnership agreement with the Green Investment Group, a subsidiary of the Australian Macquarie Group, and the Scottish Renewable Infrastructure Development Group (RIDG), with the aim of responding to the next Scottish offshore wind tender. The three companies have joined forces in a consortium called Offshore Wind power Ltd in order to respond more effectively to the ScotWind tender, which closes on 16 June 2021. The project covers an area of 8,600 km2 of the Scottish seabed and is crucial to the development of offshore wind power in order for Scotland to meet its environmental objectives. Indeed, the country intends to generate half of its energy consumption from renewable energies before 2030 and to reach zero net emissions by 2045. Green Investment Group and TotalEnergies have already won a joint concession on the UK seabed as part of the fourth tranche of tenders for the development of wind energy in England and Wales.

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Positive factors for TotalEnergies shares
The factors in favour of a rise in the TotalEnergies share price:

If you want to be able to anticipate future price movements in TotalEnergies shares, you need to know how the company's growth will behave in the longer term. To do this, it is ideal to be familiar with the advantages and disadvantages of this group, which we will present to you here in detail:

Let's start with a summary of the main strengths of the TotalEnergies group at the moment and therefore of the elements that can support its growth or the rise of its share price on the stock market:

  • Firstly, we can of course highlight the fact that the positioning of the TotalEnergies group in its sector of activity remains predominant. Indeed, the group is still part of the oil supermajors and is now also positioning itself effectively in the other energy sectors since it is notably one of the leaders in solar energy with its subsidiary SunPower.
  • Still among the group's strengths, we can of course mention the major strategic change made at the beginning of 2021 by Total, which became TotalEnergies in order to underline its desire to diversify into energy as a whole, with a particular emphasis on renewable energies, which are considered to be more promising for the future, while the oil market is running out of steam more and more.
  • Despite the recent drop in oil prices, the TotalEnergies share has retained the confidence of investors thanks to the company's resilience in times of crisis. The group managed to maintain a certain financial health during the Covid-19 pandemic, which was not the case for some of its competitors.
  • The group's industrial organisation, which was also recently modified, is another asset with the separation of activities and the creation of the Gas renewables & Power branch in renewable energy and energy efficiency and Total Global Services in support functions. The holding company has also refocused on strategic functions.
  • Finally, we also appreciate the group's strategy to set up numerous strategic partnerships in fast-growing sectors, including green energy, with the aim of becoming a key player in this segment in the years to come.
Negative factors for TotalEnergies shares
The factors in favour of a drop in the TotalEnergies share price:

Of course, TotalEnergies Group also shows some weaknesses that you should be aware of before making your analysis. Here are its main weaknesses at the moment:

  • First of all, it is regrettable that TotalEnergies' business is still very strongly linked to the fossil fuel sector with most of its revenues coming from these segments.
  • The very strong competition from certain other major groups in this sector is also a brake on the development of its market share, since the other oil majors are also increasingly turning to other energies.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

On which market and stock index is the TotalEnergies share listed?

The TotalEnergies share price is of course listed on the French stock exchange, i.e. the Euronext Paris market. More precisely, these shares are listed in compartment A of this market. But the group is also part of the main stock market index of the Paris stock exchange, namely the CAC 40, as well as the Eurostoxx 50, Stoxx Europe 50 and Global Titanium index. It is currently the second largest market capitalisation in France.

When did the Total Group become TotalEnergie?

In May 2021, the change of name of the Total Group was voted at the General Meeting and became the TotalEnergie Group. This change aims to present the group as an energy company with heavy investments planned in renewable energies, batteries and electricity distribution.

How can I find out about future trends in the TotalEnergies share price?

In order to know how the TotalEnergies share price may evolve in the more or less long term, you must first of all know how to perform different analyses of this stock. Before buying or selling the TotalEnergies share, you will need to carry out a technical analysis by studying historical stock market charts using trend and volatility indicators as well as a fundamental analysis using news and publications.

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