TotalEnergies’ Q3 profit rises on higher oil prices, refining
TOTALENERGIES’ third-quarter profit rebounded, ending a run of three consecutive quarterly declines as the French energy giant benefited from higher oil prices and refining margins.
While oil majors earnings are below the record levels seen last year, the industry still has huge amounts of cash flowing into its coffers. That has allowed them to boost payouts to shareholders and in recent weeks has prompted the biggest US takeovers in decades.
“TotalEnergies demonstrates once again this quarter its ability to leverage a supportive price environment,” CEO Patrick Pouyanne said on Thursday (Oct 26).
Shares of the company fell 0.7 per cent to 61.74 euros as at 9.08 am in Paris.
TotalEnergies’ adjusted net income for the third quarter rose 30 per cent quarter on quarter to US$6.5 billion. That beat the average analyst estimate of US$6 billion. Compared with a year earlier, profit was 35 per cent lower.
The largest increases from the prior quarter were seen in the company’s exploration and production unit, and in refining and chemicals. The former was boosted by higher energy prices, while the latter enjoyed wider profit margins.
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TotalEnergies’ third-quarter refining throughput was 7 per cent lower than a year earlier due to planned maintenance and unplanned shutdowns. The Port Arthur plant in Texas should restart in mid-November, the company said.
Since Russia’s invasion of Ukraine last year, TotalEnergies’ liquefied natural gas business has been a major profit driver thanks to the lucrative trade in diverting cargoes to Europe from lower-price markets. The company expects gas markets to remain “tense” in the region this winter despite high inventories.
Its average LNG selling price of US$9.6 per million Btu in the third quarter should rise above US$10 in the final three months of the year, the energy giant said.
Total hydrocarbon production in the fourth quarter should average 2.4 million to 2.5 million barrels of oil equivalent a day, little changed from 2.48 million barrels in the third quarter.
TotalEnergies reiterated that it will spend US$9 billion on share buybacks this year as it shares the proceeds from the sale of Canadian assets with investors.
It announced an interim dividend of 0.74 euro a share, unchanged from the second quarter and up 7.3 per cent from a year earlier. BLOOMBERG
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