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Investing.com -- TotalEnergies met expectations for third-quarter earnings on Thursday, as stronger production and better refining margins helped cushion the impact of lower oil prices.
Still, the energy firm’s shares fell 1.2% in early trading after the release.
Adjusted net income came in at $4.0 billion, down from $4.1 billion a year earlier and broadly matching forecasts compiled by LSEG.
The company generated $7.1 billion in cash flow during the quarter, a 4% increase from the same period last year.
Upstream production averaged 2.5 million barrels of oil equivalent per day.
“The company’s strong financials are underpinned by accretive hydrocarbon production growth of more than 4% year-on-year and improved downstream results,” Chief Executive Officer Patrick Pouyanné said in a statement.
Oil prices weakened compared with last year as higher supply from OPEC+ members and other producers raised concerns about oversupply. The softer market, together with subdued European petrochemical demand, led TotalEnergies to scale back its spending and share buyback plans last month to manage leverage.
The group’s gearing, or debt-to-equity ratio, edged lower to 17.3% from 17.9% in the previous quarter.
Commenting on the report, Jefferies analyst Mark Wilson said results were supported by "upstream Growth and working capital."
TotalEnergies’ net debt fell 5% quarter-on-quarter to $24.6 billion, which Wilson said was "helped by $1.6bn working capital benefit."