TotalEnergies flags earnings boost from strong trading and oil price spike

TotalEnergies expects a strong rise in first-quarter earnings, driven by higher oil prices and exceptional trading performance, despite production losses linked to the Iran conflict. Brent crude surged to multi-year highs near $120 per barrel after the outbreak of hostilities and disruptions in the Strait of Hormuz, which also damaged key energy infrastructure in the region. The company said it lost around 100,000 barrels of oil-equivalent per day in the Middle East, but this was offset by stable output elsewhere, keeping overall production flat compared to the previous quarter. Higher prices significantly boosted upstream earnings, while downstream results improved due to strong refinery utilization and profitable crude trading. TotalEnergies was particularly active in oil markets during the crisis, purchasing large volumes of Middle Eastern crude and reportedly benefiting from price volatility, with some estimates suggesting over $1 billion in trading gains. The company also highlighted strong LNG performance and warned that trading results can vary due to volatility. Overall, its outlook aligns with other major energy firms like BP and Shell, which also expect stronger profits from trading and higher prices in the current market environment.