By Christian Moess Laursen


TotalEnergies expects second-quarter oil-and-gas output at the high end of its guidance range, but said weak refining margins will hamper downstream results.

The French energy major said Tuesday that it expects quarterly earnings from its exploration and production division to be boosted by oil-and-gas production coming in at the high end of its guided range and by oil prices rising since the first quarter.

Europe's second-largest oil-and-gas company expects production to be close to 2.45 million barrels of oil-equivalent a day, compared with the 2.46 million it produced in the first quarter.

In the first quarter, the exploration and production unit--which is usually the company's main profit driver--reported $2.55 billion in adjusted net operating profit.

However, it also expects downstream results to suffer from decreasing refining margins in Europe and the Middle East, echoing a similar message from peers BP and Exxon Mobil last week.

This will be partially compensated by a higher utilization of TotalEnergies' refineries and an increase in marketing results, it said.

Meanwhile, it expects its integrated liquefied natural-gas results to be broadly in line with the first quarter, when it booked $1.22 billion. Earnings from its integrated power segments are expected to be around $500 million, compared with $611 million in the preceding quarter.

Today's update looks overall in line with expectations, and should only trigger limited changes to consensus estimates, Jefferies analysts said in a note to clients.

At 0703 GMT, TotalEnergies' shares were down 0.5% at EUR62.96.


Write to Christian Moess Laursen at christian.moess@wsj.com


(END) Dow Jones Newswires

07-16-24 0333ET