Total, the French oil company, announced on Wednesday its expectations for an increase in its results for the third quarter, benefiting from increased upstream production and improved refining margins, despite a year-on-year decline in oil prices by $10 per barrel.
Total mentioned in its trading statement that results and cash flows from business sectors could rise by between 0% and 5% due to the growing production of hydrocarbons and improved downstream sector results.
In the stock market, Total's shares rose by 3.12%, trading around €51.81 on the French market, bolstered by optimism about the company’s financial performance.
Total faces pressure to reduce its debt this year following acquisitions worth around $3.5 billion during the first half of 2025. CEO Patrick Pouyanne has promised to increase revenue through asset sales and retail energy and gas sales, along with improved refining margins.
According to Total's forecasts, the company’s debt ratio is expected to improve by between 0.5% and 1% compared to the second quarter, when it stood at 17.9%. Total also reported that the average European refining margin reached $63 per ton in the third quarter, more than 300% higher than the same period last year, supported by rising demand for diesel during the driving season and reduced supply due to the EU's ban on importing Russian fuel.
These factors are expected to contribute to an increase in downstream operational results by between $400 million and $600 million year-on-year, while the results for the liquefied natural gas sector will see a temporary decline due to maintenance work at the Ichthys facility in Australia.
Total estimates that results from the integrated energy sector will remain consistent with the second quarter results of $574 million, with an annual increase of up to 18%. The company also expects its net investments to be around $3 billion in the third quarter, benefiting from asset sales amounting to approximately $500 million after accounting for acquisitions.
