The oil and gas group is paying the consequences of the drop in oil prices and “sharply declining refining margins”, according to its CEO Patrick Pouyanné.
TotalEnergies unveiled its third quarter results this Thursday, October 31: with a net profit of $4.1 billion, the French oil and gas group made $2.3 billion (2.1 billion euros) less than 'in the spring, which represents a drop of 39%. It also falls short of forecasts calculated by FactSet and Bloomberg, which predicted $4.3 billion.
“In a bearish oil environment, with sharply declining refining margins, TotalEnergies demonstrates the resilience of its integrated multi-energy model,” commented TotalEnergies CEO Patrick Pouyanné in the press release.
“Oil prices are volatile”
Looking at the third quarter of 2023, the drop is even 65%. Over the first nine months of the year, net profit was down 28% compared to the same period a year earlier.
“In a context of modest global economic growth and geopolitical tensions in the Middle East, oil prices are volatile,” points out the group in its press release. Last weekend, Israeli strikes on Iran panicked the stock markets, raising fears of a sharp rise in the price of black gold. If the Jewish state ultimately spared the oil infrastructure, uncertainty will remain for the sector as long as the conflict lasts.
In its press release, TotalEnergies also announced the payment of a third interim dividend for 2024, amounting to 0.79 euros per share.
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