TotalEnergies mitigates oil price plunge with higher refining margins

20th Jan 2026 11:08

(Sharecast News) - TotalEnergies said on Tuesday that strong refining margins offset the impact of lower energy prices as the French oil major reported steady cash flow levels in the fourth quarter.

The price of Brent crude averaged just $63.70 a barrel in the fourth quarter, down from $69.10/bbl in the third quarter and well below the $74.70/bbl level seen in the fourth quarter of 2024.

The average LNG price also slumped to $8.48/Mbtu from $10.37/Mbtu the year before, while average gas prices declined to $5.11/Mbtu from $6.26/Mbtu previously.

Despite this, cash flow from across the business is expected to have remained at the same level as the year before, helped by Upstream production growth and continued improvement of Downstream results.

Oil and gas production increased by nearly 5% year-on-year in the fourth quarter, helping full-year output rise by 4%, topping the company's guidance of "more than 3%".

While exploration and production results will reflect lower commodity prices, cash flows in the Integrated Power division are expected to increase, while Refining and Chemicals cash flows rose "strongly" with refining margin jumping to $85.70 a metric ton from $63.00 a ton in the third quarter.

TotalEnergies shares were up 0.9% at €56.59 by 1243 GMT.