By America Hernandez
PARIS -TotalEnergies reported a 2.4% drop in third-quarter earnings on Thursday, meeting expectations as the French oil major raised upstream production and achieved improved crude refining margins to help offset lower oil prices.
Adjusted net income slipped to $4.0 billion from $4.1 billion a year earlier, in line with an analysts’ consensus compiled by LSEG — though Total had flagged a slight earnings rise in a trading update earlier this month.
Its shares were down 1.5% to 53.32 euros at 0856 GMT.
While oil prices in July-to-September were down about 14% from a year earlier, European margins on refining fuels have soared more than 300% as the EU’s ban on fuel imports made from Russian oil restricted supply just as diesel demand rose during the holiday driving season.
That boosted Total’s downstream results by $462 million or 76% versus a year earlier.
The company also increased its hydrocarbon production by 4% to 2.5 million barrels of oil equivalent per day, leading to a 10% boost in upstream earnings.
Earnings from its liquefied natural gas segment fell 18% reflecting maintenance-related outages and calmer markets.
Total said its LNG sales price would fall in the fourth quarter to $8.50 per million British thermal units, even as markets show a rise to $11/Mbtu on winter demand, due to a time lag affecting its pricing formulas.
The company is under pressure from investors to lower its debt after buying assets worth more than $3 billion in the first half while oil prices look set to fall further in 2026.
It announced a cost-saving programme, though some asset sales meant to bring in cash have fallen through.
About $400 million in disposals net of acquisitions this quarter have lowered the company’s gearing, or debt-to-equity ratio, to 17.3% from 17.9% in the second quarter.
“Looking forward, the key for Total will be to de-risk the $2 billion planned divestments” in the fourth quarter to further push down gearing, said RBC analyst Biraj Borkhataria.
He added that Total could generate more cash by selling Indian renewables co-owned with Adani Green Energy.
The company confirmed a trimmed share buyback of up to $1.5 billion in the fourth quarter.
Its third interim dividend of 0.85 euros per share, which Total said it would not cut, is 7.6% higher than a year earlier.
Total also announced that its plan to cross-list on the New York Stock Exchange will be realised on December 8, when existing American Depositary Receipts will be converted into ordinary shares.
(Reporting by America Hernandez in Paris, Alban Kacher in Gdansk; editing by Richard Lough and Jason Neely)
