French energy company TotalEnergies expects a significant increase in third-quarter profits, supported by higher refining margins and strong performance in its liquefied natural gas business.

The company is benefiting from changes in global energy markets that have pushed up prices and improved earnings opportunities for major oil and gas producers.

TotalEnergies expects its refining margin in Europe to reach $33.20 per barrel for the quarter, almost four times the level recorded during the same period last year.

The company also anticipates stronger earnings from its downstream operations, which include refining and the sale of petroleum products.

Cash flow from its refining and chemicals operations is projected to double to approximately $4 billion.

Meanwhile, liquefied natural gas prices rose by 20% over the previous quarter, contributing to increased trading activity and stronger business performance.

The company estimates that its hydrocarbon production averaged 2.5 million barrels of oil equivalent per day.

Despite geopolitical tensions affecting energy supplies, TotalEnergies said its production has experienced limited disruption from the regional conflict.

The company’s performance reflects how changes in energy prices and refining margins can affect the profitability of major energy businesses.

Investors will be watching its detailed financial results, alongside those of other major oil companies, to assess whether the improved conditions can be sustained.

Source: Reuters.