TotalEnergies’ profit drops more than expected on refining slump

TotalEnergies plans to buy back $2bn of its shares in the fourth quarter, maintaining the same pace as prior periods this year.

TotalEnergies SE reported a bigger-than-expected drop in profit for the third quarter as refining margins and oil prices fell.

Following a period of unusually high oil and gas prices in recent years, earnings at the French energy giant and its peers are now normalising as weak economic growth in Europe and China undermines demand. That’s putting pressure on the balance sheets of these companies, which have been rewarding investors with hefty payouts.

TotalEnergies’ adjusted net income was $4.07 billion in the quarter, down from $6.45 billion a year earlier, the company said in a statement on Thursday. Analysts had expected profit of $4.27 billion.

TotalEnergies plans to buy back $2 billion of its shares in the fourth quarter, maintaining the same pace as prior periods this year.

© 2024 Bloomberg

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