TotalEnergies Q3 income hits three-year low as refining margins plunge

By America Hernandez

PARIS (Reuters) - French oil major TotalEnergies (EPA:TTEF ) reported third-quarter adjusted net income at a three-year low of $4.1 billion on Thursday, hit by collapsing refining margins and upstream outages.

Adjusted net income was down 37% from a year earlier and down 12.7% from the previous quarter's $4.7 billion. The result just missed analyst expectations of $4.2 billion.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) fell 23.6% year on year to $10 billion.

Earlier this month, TotalEnergies warned its financial results would take a hit as its refining margin tumbled 65%.

Global refining margins have dropped sharply in recent months in the face of weaker global economies and the start-up of several new refineries in Asia and Africa, while oil prices fell 17% in the quarter - the largest quarterly decline in a year - on worries about the global oil demand outlook.



TotalEnergies took a $1.1 billion impairment related to the August bankruptcy filing of U.S. subsidiary SunPower (OTC:SPWRQ ), and its exit of South African offshore gas field blocks 11B/12B and 5/6/7.

Quarterly hydrocarbon production of 2.4 million barrels of oil-equivalent per day was at the low end of guidance given at half year due to security-related disruptions in Libya and an outage at the Ichthys LNG plant in Australia.

Source: Investing.com