TotalEnergies (EU:TTE) reported third-quarter earnings in line with market expectations, as higher production and stronger refining margins helped counterbalance the impact of softer oil prices. Despite the solid performance, shares slipped 1.2% in early Thursday trading following the announcement.
The French energy company posted adjusted net income of $4.0 billion, down slightly from $4.1 billion in the same quarter last year and broadly matching estimates compiled by LSEG. Cash flow rose 4% year-on-year to $7.1 billion, supported by steady upstream and downstream performance. Average upstream output reached 2.5 million barrels of oil equivalent per day.
Chief Executive Officer Patrick Pouyanné said: “The company’s strong financials are underpinned by accretive hydrocarbon production growth of more than 4% year-on-year and improved downstream results.”
Oil prices remained below 2024 levels as increased supply from OPEC+ and other producers reignited oversupply concerns. The weaker price environment, along with subdued European petrochemical demand, prompted TotalEnergies last month to trim spending and share buyback plans to preserve balance sheet strength.
The group’s gearing ratio — a measure of debt to equity — eased to 17.3% from 17.9% in the previous quarter, while net debt declined 5% sequentially to $24.6 billion.
Commenting on the results, Jefferies analyst Mark Wilson noted that the outcome was supported by “upstream growth and working capital,” adding that net debt improvement was “helped by $1.6bn working capital benefit.”
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