Investing.com -- TotalEnergies (EPA:TTEF) said on Tuesday it expects first-quarter hydrocarbon production to land at the upper end of its guidance range, while higher refining margins are set to lift earnings.
The French energy group forecasts production for the first quarter of 2025 to come in between 2.5 million and 2.55 million barrels of oil equivalent per day.
Refining margins in Europe are also seen improving on a quarterly basis, with the company projecting its margin indicator to rise to $29.4 per metric ton, up from $25.9 in the previous quarter. That remains well below the $71.7 per ton recorded in the same period last year.
Jefferies analysts said the trading update looks “overall in line,” and expect TotalEnergies’s results to meet consensus estimates for adjusted net operating income of $5.2 billion “as better volumes and utilizations are offset by a lower contribution” from the company’s R&C segment.
“The large seasonal working capital (WC) build will cause TTE to increase leverage this quarter, in our view,” they added.