TotalEnergies reports a slight improvement in the fourth-quarter refining profit margins

TotalEnergies said that it expects the fourth quarter 2024 results downstream to benefit from a slight improvement in refining profit margins. The French oil major made this announcement in its trading update.

The European refining mark-up was $25.90 per ton of metric weight in the fourth quarter last year. This is up from $15.40 the previous quarter.

It noted that the fall of $5 per barrel in oil prices is expected to have a negative impact on Exploration and Production in the fourth quarter.

The adjusted net income of Total has fallen for five consecutive quarters and reached a three-year-low at the end of September, reflecting both upstream problems and a decline in European refining profit margins.

BP, Shell, and Exxon have all issued profit warnings in the last month due to lower natural gas demand.

The global demand for gasoline and Diesel has also fallen below expectations. Meanwhile, the launch of new oil refining facilities in Asia and Africa have resulted into an oversupply.

Profits for the world's largest oil and gas companies fell in 2024, following two years of record earnings. This was due to a decline in global oil demand and a stabilization of energy prices after the jumps caused by Europe losing Russian gas following Moscow's invasion into Ukraine. Reporting by Alban Kach and America Hernandez, editing by David Goodman & Jason Neely

(source: Reuters)