French oil major TotalEnergies has announced that its second-quarter hydrocarbon production levels will reach the top end of its previously announced guidance range. The company also expects some relief in pressure on refining margins due to higher refinery utilization.
TotalEnergies stated that its fossil fuel production is expected to hit close to 2.45 million barrels of oil equivalent (mboe) per day, at the high end of its guidance. The company’s Integrated Power business is also anticipated to post earnings of around $500 million, with quarterly cash flow seen in line with the $2.5 billion to $3 billion guidance range. Additionally, the company’s liquefied natural gas (LNG) results are expected to be broadly in line with the first quarter.
The update comes ahead of TotalEnergies’ quarterly earnings release on July 25. Investors are closely monitoring the performance of the company and its peers, as refining margins have been dragged down by softening gasoline demand. Earlier this month, BP had issued a profit warning.
Despite the positive production outlook, TotalEnergies’ shares were down by around 0.8% in early trading on Tuesday, in line with the broader market movement. Jefferies analyst Giacomo Romeo noted that the trading update appears to be overall in line with expectations and should not trigger significant changes to consensus earnings.
The resilience of TotalEnergies’ production and the company’s ability to navigate the current market challenges will be closely watched by investors as the industry navigates the evolving energy landscape.