French oil major TotalEnergies (TTEF.PA) announced on Tuesday that its second-quarter hydrocarbon production levels will reach the top end of its guidance range, while higher refinery utilization will partly alleviate pressure on refining margins.
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 impacted by softening gasoline demand. Earlier this month, London-listed BP (BP.L) issued a profit warning.
By the Numbers
TotalEnergies expects fossil fuel production to reach the high end of its previously announced range, close to 2.45 million barrels of oil equivalent per day. Its Integrated Power business is expected to post earnings of around $500 million, with quarterly cash flow in line with the $2.5 billion to $3 billion guidance. LNG results are expected to be 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 in line and should trigger limited changes to consensus earnings,” Jefferies analyst Giacomo Romeo said in a research note.