By Adam Whittaker


TotalEnergies expects fourth-quarter hydrocarbon production to increase slightly but said oil prices and refining margins will be a drag on its financial performance. Here's what the French oil-and-gas company had to say:


On Hydrocarbon Production:


"Hydrocarbon production is anticipated to slightly increase, within the quarterly guidance range (2.4 and 2.45 Mboe/d)."


On Exploration and Production results:


"Exploration & Production results are expected to reflect the $5/b decrease in oil prices, partially compensated by higher gas realizations."


On LNG results:


"Integrated LNG results are expected to benefit from a 6% increase in production, LNG realizations above $10/Mbtu and stronger gas trading that is back to the performance of the fourth quarter 2023."


On Integrated Power results:


"Integrated Power 4Q results are expected to be between $500 and $600 million, resulting in annual cash flow that is in line with guidance of >$2.5 billion."


On Downstream performance:


"Overall, the Downstream environment (refining and chemicals margins) remains weak. Downstream results and cash flow are expected to reflect the 10 $/t increase in European refining margins."


On gearing:


"Gearing is expected to be below 10%, benefiting from roughly a $5 billion positive contribution of working capital in the quarter, including $1.5 billion of exceptional items."


Shares were up 2.2% at 57.14 euros in midday European trade. They are down 4.1% over the past 12 months.


Write to Adam Whittaker at adam.whittaker@wsj.com


(END) Dow Jones Newswires

01-16-25 0709ET