TotalEnergies' Third Quarter Net Profit Hits Lowest Level in Three Years

TotalEnergies reported its adjusted net income for the third quarter at $4.1 billion, the lowest level in the last three years. Adjusted net income decreased by 37% compared to the previous year and by 12.7% from the $4.7 billion reported in the previous quarter.

The results fell short of analysts' expectations of $4.2 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 23.6% year-on-year to $10 billion. Earlier this month, TotalEnergies had warned that its financial results would be impacted due to a drop in the refining margin to $65.

Global refining margins have sharply fallen in recent months due to weakening global economies and the startup of several new refineries in Asia and Africa, while concerns over the outlook for global oil demand led to a 17% drop in oil prices this quarter, marking the largest quarterly decline in a year.