TotalEnergies third-quarter profit surges on refining income (updated)

TotalEnergies SE

Thu 07:46

Adds shares in paragraph 4, further details throughout. Adds graphics on refining profits and on gas and oil prices.
Adjusted net income jumps 127% to $9.1 billion, above $8.3 billion LSEG analyst consensus
Refining and Chemicals division profit at $3.6 billion, five times year prior
Total reiterates $2.5 billion fourth-quarter buyback and adds $2.5 billion first-quarter 2027 repurchase
By Dimitri  Rhodes
Oct 29 (Reuters) - French oil major TotalEnergies' TTEF.PA third-quarter profits more than doubled to $9.1 billion, it said on Thursday, beating expectations, as it profited from the reduced global supply of oil products following the US-Israeli war with Iran.
Adjusted net income of $9.1 billion in the July to September period was up 127% from a year ago, its highest since the first quarter of 2022, and above the $8.3 billion expected on average by 12 analysts polled by LSEG.
Total reiterated plans for share buybacks of $2.5 billion for the fourth quarter, and said it would buy back another $2.5 billion in the first quarter of 2027, at the top end of guidance issued last month.
Shares in the company were up 0.9% to €84.5 at 0815 GMT, underperforming a 1.2% increase in the broader European energy market .SXEP. TotalEnergies is up about 50.4% year-to-date.
The war with Iran, which led to the effective closure of the Strait of Hormuz, has pushed crude oil and gas prices to multiyear highs and has limited global supply of refined products ranging from diesel to jet fuel, delivering a windfall for major energy companies.
TotalEnergies in October had already guided third-quarter profits would be driven by a near quadrupling in refining margins from a year ago to $33.2 per barrel, and a rise in liquefied natural gas income.
Profit from its Refining and Chemicals division at $3.6 billion, was more than five times the level of a year ago and double the previous quarter, the company said.
     "The increase of nearly 10% refining throughput enabled the company to fully capture historically high refining margins in Europe and worldwide, while oil trading activities outperformed at a level comparable with the two previous quarters," CEO Patrick Pouyanne said in a statement.
Income at the company's LNG unit climbed to $1.9 billion as average gas prices rose by 20% compared to the last quarter, and natural gas trading activities were strong in a bull market, said the company.
London peer Shell SHEL.L also posted a better-than-expected profit on Thursday.
     

(Reporting by Dimitri Rhodes in Gdansk. Editing by Dominique Patton and Barbara Lewis)
((Dimitri.Rhodes@thomsonreuters.com))