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Energy Production · Middle East Conflict · Oil Prices · TotalEnergies
TotalEnergies expects a significant financial boost for Q1 from higher oil and gas prices, projecting an additional $2 billion to $2.5 billion in working capital, even as its hydrocarbon production faces a 15% reduction due to the Middle East conflict.
The French energy major anticipates first-quarter oil and gas production to remain flat quarter-over-quarter, despite the shutdown of approximately 15% of its total output in Qatar, Iraq, and offshore UAE, and damage to a Saudi Arabian refinery complex, all attributed to the U.S. and Israel's war with Iran. New field startups in Libya and Brazil are expected to partially offset these production losses.
The surge in oil and gas prices, reaching their highest levels since 2022, is the primary driver for the expected financial uplift, as reported by Dow Jones. British energy giant Shell also reported a boost to its bottom line from oil trading, despite cutting its Q1 gas production outlook due to the conflict.
TotalEnergies CEO Patrick Pouyanne stated that a prolonged conflict, lasting more than three months, can lead to "fairly serious supply issues," though a quick reopening of the Strait of Hormuz can normalize the situation within three months. The article, written by Joshua Kirby for Dow Jones, highlights the significant volatility the Iran war introduces to energy markets and businesses.
TotalEnergies Q1 Profits Surge Despite Production Hit(current)
