TotalEnergies flags higher production, gas sales ahead of Q1 results

By Alban Kacher and America Hernandez

April 15 (Reuters) - TotalEnergies TTEF.PA boosted production and benefited from better gas sales in the first three months of 2025, though its refining branch is still recovering from an industry-wide drop in profitability , it said in a trading update on Tuesday.

The French oil major's shares were up 0.5% at 1035GMT. It is due to report first-quarter results on April 30.

Oddo BHF analyst Ahmed Ben Salem said that among energy firms TotalEnergies "is the most resilient in a weaker macro environment, supported by the diversification to [liquefied natural gas] and renewables."

The company boosted upstream oil and gas output by nearly 4% compared to early 2024. And while oil prices are lower than a year ago, gas prices are slightly up.

TotalEnergies said it was also able to benefit from a slight recovery in refining margins by producing more fuels.

At $29.40 per metric ton, profit margins on refining oil into fuels in Europe have risen over the past six months but are still 59% lower than a year ago, largely due to weak demand and new competition from Asian and African refineries.

Last week, British peer BP BP.L said it expected stronger refining margins for the quarter, as did U.S. firms Occidental OXY.N and ExxonMobil XOM.N.

TotalEnergies' integrated power branch, meanwhile, will bring in between $450 million and $500 million, slightly down from a year ago, it said. It did not sell any minority stakes in its renewables assets this quarter, a practice which normally boosts returns.

Working capital will increase by between $4 billion and $5 billion, which TotalEnergies described as a seasonal effect.