TotalEnergies expects strong Q3 results from record refining margins

TotalEnergies expects strong third-quarter results driven by record-high refining margins and rising liquefied natural gas (LNG) prices. The company reported that refining margins in Europe reached $33.20 per barrel, a significant increase from $13.50 in the second quarter and nearly four times the level seen during the same period last year.

This surge is attributed to global fuel shortages and geopolitical tensions in the Middle East and Ukraine, which have impacted energy infrastructure and market balances. TotalEnergies anticipates a $2 billion increase in cash flow from its refining and chemicals activities compared to the previous quarter, supported by a 10% increase in refining volumes.

The company noted that these high margins reflect the global market equilibrium between crude oil prices and refined product prices. This trend of elevated margins is also being observed by other major energy companies, including Shell and BP.