TotalEnergies delivers 61% rise in Q3 net profit despite oil price slump
Paris — TotalEnergies reported a robust third-quarter performance, posting a 61 percent rise in net profit despite a notable decline in crude oil prices from a year earlier. The French energy major said today that the result reflected higher production volumes, improved refining margins, and solid contributions from its power and downstream businesses.
The company’s net profit reached $3.68 billion, up from $2.69 billion in the second quarter and $2.29 billion a year earlier. Adjusted for inventory effects and exceptional items, TotalEnergies’ underlying net income stood at $4 billion, nearly unchanged from the $4.1 billion recorded in the same period of 2024. This figure was broadly in line with analysts’ forecasts, suggesting that the company managed to maintain earnings resilience even amid softer commodity prices.
Oil prices during the quarter averaged more than $10 per barrel lower than the same period last year. Despite this, TotalEnergies’ diversified portfolio and operational efficiency allowed it to capture gains in other segments, particularly refining and power generation.
Production growth underpins earnings
TotalEnergies’ output for the third quarter averaged 2.51 million barrels of oil equivalent per day (boe/d), representing a 4.1 percent increase from the 2.41 million boe/d reported in the third quarter of 2024. The company attributed the rise to several key project start-ups and ramp-ups, notably in Brazil, the US Gulf of Mexico, Argentina, and Denmark.
Further contributions came from strategic acquisitions, including OMV’s stake in SapuraOMV in Malaysia and additional interests in Eagle Ford shale gas assets in Texas. Together, these developments reinforced TotalEnergies’ upstream growth trajectory and diversified its production mix toward higher-value barrels.
Looking ahead, the company expects its oil and gas output to range between 2.525 million and 2.575 million boe/d in the fourth quarter. This guidance reflects the anticipated impact of the restart of the Ichthys LNG project in Australia, which had previously undergone maintenance.
Upstream and LNG segments see year-on-year declines
Despite overall profit growth, TotalEnergies’ upstream business faced a more challenging pricing environment. The company’s Exploration & Production segment delivered an adjusted operating income of $2.17 billion, down 12.6 percent from the year-earlier quarter. The decline mirrored weaker average realized oil prices and higher operating expenses linked to ramp-up activities.
Similarly, the Integrated LNG segment experienced a dip in profitability. Adjusted operating income fell to $852 million from $1.06 billion in the third quarter of 2024. Lower gas prices and less favorable trading conditions were cited as key factors weighing on performance. However, the company noted that long-term LNG contracts and integrated value chains continued to provide a degree of stability against spot market volatility.
Refining and downstream operations shine
The standout performer for the quarter was the Downstream segment, which encompasses refining and marketing operations. TotalEnergies’ adjusted operating income in this division surged to $1.07 billion, up sharply from $605 million a year earlier.
The company attributed this improvement to exceptionally strong refining margins in Europe, which averaged $63 per barrel, compared with just $15.4 per barrel in the same quarter of 2024. TotalEnergies benefited from both favorable market conditions and high asset availability, allowing it to fully capitalize on the widened spreads.
European refiners enjoyed stronger margins as disruptions in global refining capacity, combined with geopolitical tensions and seasonal maintenance, tightened fuel supply. TotalEnergies’ efficient refinery network, particularly in France and the Netherlands, positioned it well to capture these gains.
Power and renewables continue to grow
The Integrated Power segment, a growing pillar of TotalEnergies’ transition strategy, also posted improved results. Adjusted operating income increased to $571 million from $485 million a year earlier. The company reported a 13.5 percent year-on-year increase in net power production, reaching 12.6 terawatt-hours (TWh).
This growth was supported by the expansion of TotalEnergies’ renewable energy portfolio and rising electricity demand in its key markets. The company continues to invest in solar, wind, and storage assets across Europe and the United States, as part of its broader ambition to become a leading integrated energy player with a balanced mix of hydrocarbons and low-carbon energy.
Debt reduction and cash flow improvement
Financially, TotalEnergies maintained a strong balance sheet through disciplined capital management and robust cash generation. According to analysts at RBC Capital Markets, the company’s debt gearing ratio improved slightly to 17.3 percent, down from 17.9 percent at the end of the previous quarter.
Cash flow from operations, excluding working capital movements, amounted to $7.1 billion, compared with $6.8 billion in the third quarter of 2024. The uptick in operating cash flow reflected the company’s ability to sustain high cash conversion rates despite the lower pricing backdrop.
TotalEnergies also reiterated its full-year capital expenditure guidance in the range of $17 billion to $17.5 billion, with continued focus on upstream growth projects and the expansion of its low-carbon businesses.
Shareholder returns remain steady
The company reaffirmed its commitment to shareholder distributions, maintaining its share repurchase program at a rate of $1.5 billion per quarter. TotalEnergies’ consistent buyback activity underscores management’s confidence in cash flow strength and its strategy to balance investment in future energy growth with rewarding investors.
Outlook
While oil and gas prices have softened in recent months, TotalEnergies’ diversified business model appears well-positioned to withstand market fluctuations. The firm’s growing exposure to high-value crudes, strong refining base, and expanding renewable power footprint provide multiple earnings levers.
CEO Patrick Pouyanné is expected to continue steering the company along a dual-growth path — sustaining profitability from hydrocarbons while accelerating investments in clean energy. Analysts note that the combination of disciplined capital allocation, efficient operations, and growing cash flow generation places TotalEnergies among the most balanced energy majors globally.
With a clear focus on operational efficiency and portfolio diversification, TotalEnergies is on track to close the year with solid financial results, even as the broader energy market faces uncertainty over demand trends and price volati
Source Link : https://www.argusmedia.com/
