TotalEnergies (NYSE: TTE) reported third-quarter earnings essentially flat from a year earlier, as higher production, strong cash flows, and surging refining margins offset a 10% decline in oil prices.
TotalEnergies said on Thursday that its adjusted net income stood at $4 billion for the third quarter, flat compared to $4.1 billion for the same period of 2024. The Q3 net income was higher than the second-quarter adjusted net income of $3.6 billion and was in line with analyst expectations.
Last week, TotalEnergies said it expects its earnings and cash flow to have increased in the third quarter from a year earlier.
While the adjusted net income was flat year-over-year, cash flow from operations (CFFO) rose to $7.1 billion, up by 7% compared to the second quarter, and up by 4% from a year earlier.
The French supermajor’s Exploration & Production division reported adjusted net operating income of $2.2 billion and cash flow of $4.0 billion in the third quarter, up by 10% and 6% quarter-to-quarter, respectively.
“New projects have already generated around $400 million of additional cash flow year-on-year due to margins that are significantly above the portfolio average,” chief executive officer Patrick Pouyanné commented.
In the downstream business, adjusted net operating income and cash flow jumped by nearly $500 million year-on-year, to $1.1 billion and $1.7 billion, respectively, as TotalEnergies managed to capture improved refining margins in Europe.
Refining margins across TotalEnergies’ operations soared by 78% in the third quarter compared to the second quarter.
Looking ahead, TotalEnergies noted that refining margins remain above $50 per ton at the beginning of the fourth quarter, reflecting disruptions of diesel flows and low inventory levels.
In recent weeks, Europe has scrambled for middle distillate supply as the EU moved to close a loophole in the sanctions against Russia and the U.S. sanctioned Russia’s top oil producers and refiners, Rosneft and Lukoil.
By Tsvetana Paraskova for Oilprice.com
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