TotalEnergies said Thursday that it expects a significant increase in third-quarter profits, driven mainly by a near-quadrupling of refining margins and higher liquefied natural gas (LNG) income.
The company forecasts its European refining margin marker at $33.2 per barrel. It was $13.5 per barrel in the previous quarter and $8.4 in the same period last year.
TotalEnergies attributed the stronger outlook to the ongoing conflict in the Middle East, which has tightened energy supplies and pushed oil and gas prices to multi-year highs. The company expects downstream results and cash flow to reach “exceptional levels.”
It forecasts a 10% increase in refining throughput and a 20% rise in average LNG prices compared with the second quarter. Hydrocarbon production is expected to range from 2.45 million to 2.50 million barrels of oil equivalent per day.
TotalEnergies shares rose after the trading update, outperforming the broader European energy market.