(Corrects quantity to million, not thousand, in paragraph 3)
(Reuters) – French oil major TotalEnergies said on Tuesday its second-quarter hydrocarbon production levels will hit the top end of its guidance range, while pressure on refining margins will be partly alleviated by higher refinery utilisation.
WHY IT’S IMPORTANT
TotalEnergies quarterly earnings are due on July 25, and investors are closely watching the company and its peers as refining margins are dragged down by softening gasoline demand. London-listed BP earlier this month released a profit warning.
BY THE NUMBERS
Total expects fossil fuel production to reach the high end of a previously announced range, at close to 2.45 mboe (million barrels of oil equivalent) per day.
Its Integrated Power business is expected to post earnings of around $500 million, with quarterly cash flow seen in line with $2.5 billion to $3 billion guidance. LNG results are seen broadly in line with the first quarter.
MARKET REACTION
TotalEnergies shares were down by around 0.8% in early trade on Tuesday, in line with the broader market.
“TTE’s trading update looks overall inline and should trigger limited changes to consensus earnings,” Jefferies analyst Giacomo Romeo said in a research note.
(This story has been corrected to fix the quantity to million, not thousand, in paragraph 3)
(Reporting by Alban Kacher; Editing by Tassilo Hummel and Jan Harvey)
