TotalEnergies (TTE) announced Thursday that it anticipates a substantial increase in first-quarter profitability, fueled by elevated energy prices and vigorous LNG trading activity, despite production disruptions stemming from the persistent Middle East crisis.
Shares of the French energy giant gained approximately 3% during premarket hours on U.S. exchanges after the announcement.
The organization indicated that first-quarter production levels are projected to remain relatively stable at approximately 2.55 million barrels of oil equivalent per day when compared to the previous quarter.
Escalating tensions involving Iran have compelled TotalEnergies to reduce or suspend activities across Qatar, Iraq, and offshore United Arab Emirates facilities. Additionally, a refinery complex in Saudi Arabia was shuttered following recent damage. Combined, these disruptions are removing approximately 100,000 barrels daily from total production — representing roughly 15% of overall output.
New operational launches in Libya and Brazil are partially offsetting these losses.
Notwithstanding the production shortfall, TotalEnergies indicated that rising hydrocarbon valuations are projected to inject an estimated $2 billion to $2.5 billion into working capital throughout the quarter.
LNG financial performance is positioned to substantially surpass fourth-quarter figures. The company highlighted 10% production expansion and vigorous trading operations, benefiting from market volatility conditions.
European refining margins throughout the first quarter averaged $11.40 per ton — representing a 192% surge from $3.90 during the comparable year-earlier period and exceeding analyst projections. Refinery capacity utilization exceeded 90%.
Integrated Power segment results are forecast at approximately $500 million, maintaining year-over-year stability. The Marketing and Services division is similarly tracking consistent with last year’s corresponding timeframe.
Jefferies analyst Mark Wilson characterized the announcement as a “small positive,” observing that TotalEnergies seems to be managing working capital challenges more effectively than certain competitors, including Shell and BP.
Wilson highlighted the possibility of approximately a 10% upside to the Q1 consensus net income estimate of €4.8 billion. He pinpointed LNG trading operations as the primary catalyst for potential outperformance.
TotalEnergies is slated to unveil comprehensive first-quarter financial results on April 29.
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