TotalEnergies reports strong Q1 sales despite war-related output losses

By America Hernandez

PARIS, 16 April - TotalEnergies expects to see a significant rise in earnings in the first quarter due to a strong trading performance, and also in its upstream production?and oil sales, thanks in part to the higher prices caused by war in Iran. This is despite the fact that the conflict has shut down 15% the French group's total production.

In a?earnings outlook, the group said that the margin for refining fuels was $11.40 a barrel during the third quarter, an increase of 192% over $3.90 per barrel compared with a year ago. It is also flat when compared with the fourth-quarter margin of $11.40 in 2025.

The first quarter earnings report is due on April 29, 2019.

Benchmark Brent crude futures climbed to multi-year heights near $120 a bar after U.S. and Israeli strikes?on Iran in late -February. This was followed by Tehran closing the Strait of Hormuz, and its attacks against Gulf neighbours. These included damage to liquefied gas (LNG), facilities in Qatar supplying Total, and Saudi Arabia's SATORP refining facility co-owned by Total.

Total reported that upstream earnings increased significantly as a result of oil price gains. Downstream results also improved due to refineries operating at above 90%, and "strong performances from crude 'oil and petroleum products trading activities in March."

The company said that strong trading around market volatility also boosted its earnings from liquefied gas.

British rivals BP & Shell claim that 'the oil price volatility brought on by the war' significantly boosted their trading profit.

Chevron and Exxon, U.S. counterparts, said that higher prices have boosted upstream oil and gas earnings but hurt their downstream business because of financial hedging transactions made around cargoes which could not be delivered as a result of the Strait of Hormuz being closed. Reporting by America Hernandez, Paris. Editing by Louise Heavens & Kim Coghill

(source: Reuters)