TotalEnergies Sees Refining Margins Triple Amid Conflict

French oil giant TotalEnergies anticipates exceptional third-quarter profits as global conflict drives up fuel prices and refining margins. The company reported its European refining margin surged to $33.20 per barrel in the third quarter, nearly tripled from the previous period, and quadrupled compared to last year's figures. This increase is attributed to a 10% rise in refining throughput that allowed TotalEnergies to fully capture historically high margins across Europe and globally. Downstream results and cash flow are expected to reach exceptional levels with a $2 billion increase in Refining & Chemicals revenue compared to the second quarter, following similar expectations from European peers Shell and BP amidst a global fuel supply crunch. Additionally, oil trading activities continued outperforming previous quarters on consistent levels, while profits will be further boosted by Integrated LNG results driven by an average price increase of 20% since the second quarter.