Oct 15 (Reuters) – French oil major TotalEnergies (TTEF.PA) expects to report an increase in third-quarter results, it said on Wednesday, as higher upstream production and improving margins for refining crude offset lower oil prices and liquefied natural gas output.
The company’s European refining margin averaged $63.0 per ton in the third quarter, a more than 300% rise from the same period last year, buoyed by higher diesel demand during driving season and reduced supply due to the European Union’s ban on importing fuels made from Russian oil.
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Total is under pressure to reduce debt this year after some $3.5 billion in acquisitions in the first half of it, with CEO Patrick Pouyanne having in July promised higher income from asset disposals, retail power and gas sales, and stronger refining margins.
Its gearing ratio should improve by between 0.5% and 1% compared to the end of the second quarter 2025, the group said.
Brent crude oil prices reached $69.1 a barrel during the July-September quarter, down 14% from the same period last year. Analysts expect that price to fall further next year, prompting Total and other majors to cut buybacks and trim spending in preparation for lower earnings.
Total expects its net investments to be around $3 billion in the third quarter, benefiting from around $500 million in divestments net of acquisitions.
Reporting by Mathias de Rozario in Gdansk, editing by Milla Nissi-Prussak
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