TotalEnergies Q3 Earnings Hold Steady Despite Oil Price Dip

Core Insights - TotalEnergies reported third-quarter earnings that were essentially flat year-over-year, with adjusted net income at $4 billion, slightly down from $4.1 billion in the same period of 2024, but higher than the second-quarter adjusted net income of $3.6 billion [1][2] Financial Performance - Cash flow from operations (CFFO) increased to $7.1 billion, representing a 7% rise compared to the second quarter and a 4% increase from the previous year [2] - The Exploration & Production division achieved adjusted net operating income of $2.2 billion and cash flow of $4.0 billion in the third quarter, marking a 10% and 6% increase quarter-over-quarter, respectively [3] - In the downstream sector, adjusted net operating income rose to $1.1 billion and cash flow increased to $1.7 billion, nearly $500 million higher year-over-year, driven by improved refining margins in Europe [4] Refining Margins - Refining margins across TotalEnergies' operations surged by 78% in the third quarter compared to the second quarter, with margins remaining above $50 per ton at the beginning of the fourth quarter [4][5] - The increase in refining margins is attributed to disruptions in diesel flows and low inventory levels, as Europe seeks to secure middle distillate supply amid sanctions against Russian oil producers [5]