TotalEnergies Sees Strong Oil Trading, But Gas Business Weighs on Shares
TotalEnergies SE reported another quarter of robust oil trading following the Iran war's impact on crude markets, but warned of underperformance in its gas business.
The French major said earnings from oil trading are expected to remain at the same strong level as in the first quarter, reflecting market upheaval caused by war in the Middle East.
This echoes guidance already provided by peers, indicating the largest Western oil companies are due for bumper earnings when they begin reporting results later this month.
Total's gas business, however, is expected to underperform amid a lackluster European market. European gas trading has slowed as heightened volatility keeps many market participants on the sidelines, while disruptions to LNG flows through the Persian Gulf have pushed prices high enough to discourage utilities from refilling storage, leaving inventories well below seasonal norms ahead of winter.