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