TotalEnergies flags stronger Q2 profit on higher refining margins and robust oil trading
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TotalEnergies signaled sharply stronger Q2 profitability driven by higher refining/petrochemical margins and resilient oil trading, aligning with similar guidance from Shell and BP. The backdrop is tighter fuel markets and renewed Middle East supply-risk premium, reinforcing supportive conditions for crude and refined products. Offsetting, Integrated LNG cash flow is expected to weaken due to softer European gas pricing and weaker gas trading performance.
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TotalEnergies said it expects second-quarter profit to rise sharply from the previous quarter, supported by stronger refining margins and solid oil trading as oil prices climbed and fuel markets tightened after the Iran war. The company cut its estimate of the Middle East conflict’s impact on production to 210,000 boe/d from 360,000 boe/d previously, and said some output could not be lifted and was booked at end-June crude prices of less than $70/b. It also warned that cash flow in its Integrated LNG division is set to fall significantly, citing weaker European gas prices and underperformance in gas trading, according to the company’s earnings preview.