Key facts
- TotalEnergies' European refining margin reached up to $33.20 per barrel in Q3.
- Refining and chemicals cash flow is expected to increase by $2 billion in Q3.
- LNG prices have risen 20% since the second quarter.
- Shell reported a record high refining margin of $42 per barrel in Q3.
- Equinor also anticipates strong European refining margins.
TotalEnergies anticipates reporting robust third-quarter earnings, citing the impact of the Middle East conflict on refining margins and LNG prices. The company stated that its European refining margin surged to as much as $33.20 per barrel in the third quarter, a significant increase from $13.50 in the second quarter and $8.40 in the same period last year. This surge is expected to result in an exceptional $2 billion increase in cash flow for its Refining & Chemicals division compared to the previous quarter. The company also noted a 10% increase in refining throughput, which allowed it to capitalize on historically high margins globally. Oil trading activities and the Integrated LNG division are also projected to contribute strongly to profits, with LNG prices up 20% since the second quarter and strong trading performance driven by market conditions and anticipated winter demand.