Refining, LNG segments take Total’s profit lower in 2Q

Spanish Market: Crude oil, Electricity, Natural gas, Oil products
25/07/24

TotalEnergies said today that a worsening performance at its downstream Refining & Chemicals business and its Integrated LNG segment led to a 7pc year-on-year decline in profit in the second quarter.

Profit of $3.79bn was down from $5.72bn for the January-March quarter and from $4.09bn in the second quarter of 2023. When adjusted for inventory effects and special items, profit was $4.67bn — slightly lower than analysts had been expecting and 6pc down on the immediately preceding quarter.

The biggest hit to profits was at the Refining & Chemicals segment, which reported an adjusted operating profit of $639mn for the April-June period, a 36pc fall on the year. Earlier in July, TotalEnergies had flagged lower refining margins in Europe and the Middle East, with its European Refining Margin Marker down by 37pc to $44.9/t compared with the first quarter. This margin decline was partially compensated for by an increase in its refineries' utilisation rate: to 84pc in April-June from 79pc in the first quarter.

The company's Integrated LNG business saw a 13pc year on year decline in its adjusted operating profit, to $1.15bn. TotalEnergies cited lower LNG prices and sales, and said its gas trading operation "did not fully benefit in markets characterised by lower volatility than during the first half of 2023."

A bright spot was the Exploration & Production business, where adjusted operating profit rose by 14pc on the year to $2.67bn. This was mainly driven by higher oil prices, which were partially offset by lower gas realisations and production.

The company's second-quarter production averaged 2.44mn b/d of oil equivalent (boe/d), down by 1pc from 2.46mn boe/d reported for the January-March period and from the 2.47mn boe/d average in the second quarter of 2023. TotalEnergies attributed the quarter-on-quarter decline to a greater level of planned maintenance, particularly in the North Sea.

But it said its underlying production — excluding the Canadian oil sands assets it sold last year — was up by 3pc on the year. This was largely thanks to the start up and ramp up of projects including Mero 2 offshore Brazil, Block 10 in Oman, Tommeliten Alpha and Eldfisk North in Norway, Akpo West in Nigeria and Absheron in Azerbaijan. TotalEnergies said production also benefited from its entry into the producing fields Ratawi, in Iraq, and Dorado in the US.

The company expects production in a 2.4mn-2.45mn boe/d range in the third quarter, when its Anchor project in the US Gulf of Mexico is expected to start up.

The company increased profit at its Integrated Power segment, which contains its renewables and gas-fired power operations. Adjusted operating profit rose by 12pc year-on-year to $502mn and net power production rose by 10pc to 9.1TWh.

TotalEnergies' cash flow from operations, excluding working capital, was $7.78bn in April-June — an 8pc fall from a year earlier. The company has maintained its second interim dividend for 2024 at €0.79/share and plans to buy back up to $2bn of its shares in the third quarter, in line with its repurchases in previous quarters.

By Jon Mainwaring

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23/06/25

Brent crude tops $80/bl after US strikes on Iran

Singapore, 23 June (Argus) — Crude oil futures rose in early trading on Monday, sending Brent crude to a five-month high above $80/bl, after the US bombed Iran's nuclear sites. The front-month August Brent contract on Ice rose by 5.7pc to a high of $81.40/bl shortly after trading got underway in Asia. Brent last closed above $80/bl in January. Prices later eased, with Brent trading at $78.92/bl at 7:40am Singapore time (23:40 GMT). The Nymex front-month August WTI contract rose by 6.2pc to a high of $78.40/bl, before dropping back to $75.74/bl. The US carried out air strikes on Iran's Fordow, Natanz and Isfahan nuclear sites early on 22 June local time. The strikes were a "spectacular military success" and the sites have been "completely and totally obliterated", US president Donald Trump said. The International Atomic Energy Agency (IAEA) confirmed the attacks and said it had identified extensive damage to the Isfahan site in particular. It said the extent of damage to the Fordow facility, which is heavily fortified and built inside a mountain, is unclear. Radiation levels at the sites have not increased following the strikes, it said, citing Iranian authorities. Iran's foreign ministry condemned what it described as "brutal military aggression" by the US against its nuclear facilities. It remains unclear how Tehran will respond to the attacks. Any attempt by Iran to close the strait of Hormuz would be "a terrible mistake," US secretary of state Marco Rubio said on 22 June. The strait is the global oil market's single most vulnerable chokepoint, through which pass about 17mn b/d of crude and products, or about a quarter of seaborne oil trade. "It's economic suicide for them if they do it, and we retain options to deal with that," Rubio said. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US bombs nuclear sites in Iran: Update

22/06/25

US bombs nuclear sites in Iran: Update

Updates with remarks from President Donald Trump Washington, 21 June (Argus) — The US conducted air strikes on three nuclear facilities in Iran, President Donald Trump said Saturday evening. US bombers targeted the heavily fortified, underground facility at Fordow and sites at Natanz and Isfahan, Trump said on his social media platform. "The strikes were a spectacular military success," Trump said in a televised address Saturday night. "Iran's key nuclear enrichment facilities have been completely and totally obliterated. Iran, the bully of the Middle East, must now make peace. If they do not, future attacks will be far greater and a lot easier." Trump waited until after the US planes had left Iranian airspace before making the announcement. Israel's air and missile strikes, underway since 13 June, had already targeted those three facilities, in addition to some domestic energy infrastructure and urban areas across Iran. UN nuclear watchdog the IAEA on Friday warned of potential nuclear safety hazards from the ongoing Israeli attacks on Iran's nuclear facilities and cautioned Israel against targeting Iran's Busherh nuclear power plant and a nuclear research laboratory in Tehran. Washington-based military experts assessed that only the US Air Force had the right type of munitions to destroy Fordow. Involving the US in the Israel-Iran war is a watershed moment for Trump's presidency. Trump in the past decade has often lambasted his predecessors for involving the US in costly and fruitless military adventures in the Middle East. But he has changed his tune since the beginning of Israel's offensive on Iran, claiming that eliminating Iran's nuclear program was worth the US involvement. Trump, in his televised address, referenced the US' killing of senior Iranian military commander Qassem Soleimani in January 2020 — the last time US and Iranian forces directly exchanged fire. Tehran's response at that time involved missile attacks on US bases in Iraq that wounded more than 100 US military personnel, but drew no heavy US retaliation. The markets will closely watch Tehran's reaction to the US air strikes. Even before the US bombing raids, Trump's public musings about a possible US role in Israel's campaign against Iran in the past week spurred the oil industry and shipping sectors to increase the risk premiums embedded in their calculations. Most immediately at stake are Iran's 2.5mn b/d of crude, condensate and products exports, which mostly head to China. Oil markets are also concerned about the risk of contagion if Israel and the US draw retaliatory attacks elsewhere in the Mideast Gulf or jeopardize shipping through the strait of Hormuz — the global oil market's single most vulnerable chokepoint, through which pass about 17mn b/d of crude and products, or about a quarter of seaborne oil trade. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US bombs nuclear sites in Iran

22/06/25

US bombs nuclear sites in Iran

Washington, 21 June (Argus) — The US conducted air strikes on three nuclear facilities in Iran, President Donald Trump said Saturday evening. The US bombers targeted the heavily fortified, underground facility at Fordow and sites at Natanz and Isfahan, Trump said on his social media platform. He said he would make a televised address at 10pm ET Saturday "regarding our very successful military operation in Iran". "A full payload of BOMBS was dropped on the primary site, Fordow," Trump said. Trump waited until after the US planes had left Iranian airspace before making the announcement. Israel's air and missile strikes, underway since 13 June, already targeted those three facilities, in addition to some domestic energy infrastructure and urban areas across Iran. UN nuclear watchdog the IAEA on Friday warned of potential nuclear safety hazards from the ongoing Israeli attacks on Iran's nuclear facilities and cautioned Israel against targeting Iran's Busherh nuclear power plant and a nuclear research laboratory in Tehran. Washington-based military experts assessed that only the US Air Force had the right type of munitions to destroy Fordow. Involving the US in the Israel-Iran war is a watershed moment for Trump's presidency. Trump in the past decade often lambasted his predecessors for involving the US in costly and fruitless military adventures in the Middle East. But he has changed his tune since the beginning of Israel's offensive on Iran, claiming that eliminating Iran's nuclear program was worth the US involvement. Trump's public musings about a possible US role in Israel's campaign against Iran in the past week spurred the oil industry and shipping sectors to increase the risk premiums embedded in their calculations. Trump since 13 June alternatively held out the prospect of diplomacy and discussed killing senior Iranian leaders. Even today, after the US air strikes, Trump posted that "NOW IS THE TIME FOR PEACE!". The markets will closely watch Tehran's reaction to the US air strikes. Most immediately at stake are Iran's 2.5mn b/d of crude, condensate and products exports, which mostly head to China. Oil markets are also concerned about the risk of contagion if Israel and the US draw retaliatory attacks elsewhere in the Mideast Gulf or jeopardize shipping through the strait of Hormuz — the global oil market's single most vulnerable chokepoint, through which pass about 17mn b/d of crude and products, or about a quarter of seaborne oil trade. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Iran’s refineries at risk in escalating conflict

20/06/25

Iran’s refineries at risk in escalating conflict

Iran would probably have to curtail products exports and turn to the import markets if its refineries are attacked, write Ieva Paldaviciute and Nader Itayim Dubai, 20 June (Argus) — Key oil and gas production and export facilities have stayed out of the firing line a week into the conflict between Tehran and Tel Aviv, bringing a degree of relief to global markets. But the targeting of downstream assets by both sides has raised the spectre of looming domestic fuel shortages if the conflict endures. No Iranian crude refineries have been hit yet in the Israeli strikes that, for the most part, have focused on key military and nuclear-related infrastructure and personnel. But strikes on two gas processing facilities in the south of the country and two products storage facilities on the outskirts of Tehran suggest refineries, or condensate splitters, soon could be affected. Iran retaliated by attacking Israel's 197,000 b/d Haifa refinery on 15 June, damaging is power supply system. The plant initially continued crude processing while shutting some secondary units, but it fully halted operations on 17 June. Iran has nearly 2mn b/d of crude refining capacity spread across nine facilities, which rises to about 2.4mn b/d when including the 360,000 b/d Persian Gulf Star condensate splitter in Bandar Abbas, on the Mideast Gulf coast. This is up from below 1.9mn b/d a decade ago, after capacity additions at the 58,000 b/d Shiraz, 630,000 b/d Abadan and 220,000 b/d Tehran refineries, among others. Iran nevertheless has grappled with a severe products imbalance in recent years, driven primarily by a fast increase in its domestic fuel consumption. Although operations at all refineries remain unimpeded, the conflict has triggered a frenzy of fuel buying by Iranians, particularly in Tehran, with Israel warning residents to leave the city as it intensifies its bombing campaign. If any refining infrastructure is hit, Iran may quickly have to halt products exports to ensure that domestic supply can be met. Iran is a net exporter of fuel oil and naphtha, but its position as a gasoline and gasoil exporter has diminished in recent years owing to its fast-growing domestic demand. The reimposition of US sanctions on Iran by US president Donald Trump during his first term in 2018 and his "maximum pressure" campaign on Tehran at the start of his second term in January have only added pressure to its products trade. Iranian naphtha is shipped mainly to the UAE, where it is used as a gasoline blendstock. Iran exported about 116,000 b/d of naphtha in January-May, data from consultancy FGE show, down by 12pc from its 2024 exports. Transfer news Iranian fuel oil typically makes its way to floating storage hubs in Asia-Pacific, often after multiple ship-to-ship transfers designed to obscure its origin. Some cargoes are then re-exported to China and bought by independent refiners as feedstock fuel. Fuel oil exports stood at 252,000 b/d in the first five months of this year, down from 264,000 b/d last year. Iran has had to turn to imports to bridge the gap between its gasoline production of about 660,000 b/d and average consumption of 780,000 b/d during the Iranian year to 20 March 2025, according to state-owned refiner NIORDC. Iran's diesel production has also been playing catch-up, with heavily subsidised consumption exacerbated by fuel smuggling to neighbouring countries. Iran still exported 42,000 b/d of diesel this year, according to FGE, but this is less than half of the 102,000 b/d it exported last year. The Haifa refinery is a key supplier to Israel's domestic market but it also exported about 12,000 b/d of diesel and gasoil, and 13,000 b/d of fuel oil in January-May, mostly to neighbouring countries in the Mediterranean. A prolonged shutdown could result in Israel turning to products imports, pressuring supply chains in the Mediterranean. Israel aims to restart the plant within weeks. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

DUH fordert Drosselung von PCK-Produktion

20/06/25

DUH fordert Drosselung von PCK-Produktion

London, 20 June (Argus) — Die Deutsche Umwelthilfe hat vergangene Woche Widerspruch gegen die Emissionen-Ausnahmegenehmigung für die PCK Raffinerie Schwedt eingelegt und zugleich ein gerichtliches Eilverfahren vor dem zuständigen Verwaltungsgericht begonnen. Sollte der Eilantrag Erfolg haben, müsste die PCK ihren Betrieb drosseln, so die Hoffnung der DUH. Das Landesamt für Umwelt in Brandenburg (LfU) hatte Ende April 2025 der PCK (230.000 bl/Tag) in Schwedt die Ausnahmezulassung erteilt, fünfmal so viel Schwefeldioxid und Schwefeltrioxid zu emittieren wie das zulässige Tagesmittel. Das entspricht einer Anhebung der zulässigen Tagesemissionsgrenze — laut Bundesemissionsschutzverordnung (BImSchV) — von 200 mg/Nm3 auf 1000 mg/Nm3.Die erteilte Ausnahmeregelung soll vorerst bis Dezember 2027 gelten. Begründet hatte die PCK den genehmigten Antrag damit, dass eine Einhaltung seit dem Ende der Rohölversorgung aus Russland nicht mehr möglich sei. Seitdem werden über Rostock, Danzig und aus Kasachstan bis zu 20 verschiedene Rohölsorten mit unterschiedlichen Schwefelgehalten importiert, was zu höheren Emissionen von teilweise bis zu 1000 mg/Nm3 führen kann. Die Deutsche Umwelthilfe (DUH) sieht in der erteilten Genehmigung "gravierende Verstöße gegen europäisches und nationales Umwelt- und Genehmigungsrecht". Die Genehmigung hätte nur einem "Verfahren mit Umweltverträglichkeitsprüfung und grenzüberschreitender Öffentlichkeitsbeteiligung erteilt werden dürfen." Außerdem würde die Genehmigung dem Bundes-Immissionsschutzrecht widersprechen, das sich an Tagesmittel- und Halbstundenmittelwerten als Emissionsgrenzwerte orientiere, so die DUH. Die DUH hat am 13. Juni beim LfU Widerspruch gegen die Ausnahmeregelung für die PCK eingelegt und zudem einen gerichtlichen Eilantrag an das Verwaltungsgericht Frankfurt/Oder, der an das zuständige Gericht in Potsdam weitergeleitet wurde, eingereicht. Eine inhaltliche Entscheidung könnte bereits in der KW 26 getroffen werden, so das Verwaltungsgericht Frankfurt/Oder. Von einem erfolgreichen Eilantrag beim Verwaltungsgericht in Brandenburg erhofft sich die DUH, dass die in Kraft getretene Ausnahmegenehmigung zunächst aufgeschoben, und die PCK dadurch verpflichtet sein wird, den Betrieb zu drosseln, um die geltenden Emissionsobergrenzen laut BImSchV einzuhalten. Das polnische Klimaministerium hatte sich am 23. Mai zu der erteilten Ausnahmeregelung geäußert. Es erklärte in einer Mitteilung nach dem Treffen mit dem deutschen Bundesumweltminister Carsten Schneider, dass eines der besprochenen Themen die Sorge um die Schwefeldioxidemissionen der Raffinerie in Schwedt gewesen sei. Das polnische Ministerium bat das deutsche Ministerium um Unterstützung bei der Ansprache des Themas mit der brandenburgischen Landesregierung. Dabei bat die polnische Seite um Zugang zu Messungen der Luftqualität im Raum Schwedt und erklärte, dass das deutsche Ministerium sich diesbezüglich kooperativ zeige. Die PCK beliefert neben dem deutschen Einzugsgebiet weite Teile Westpolens mit Produkt. Von Marc Hauschild und Tomasz Stepien Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

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