TotalEnergies third-quarter income drops as refining margins collapse (updated)
31/10/2024 07:28
(Adds adjusted EBITDA, context on global refining margins in
paragraphs 3-4, impairment due to US solar subsidiary in 5)
By America Hernandez
PARIS, Oct 31 (Reuters) - French oil major TotalEnergies
TTEF.PA 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, 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.
(Reporting by America Hernandez and Benjamin Mallet in Paris;
Editing by David Goodman and Mark Potter)
((america.hernandez@thomsonreuters.com; +33623014155))