TotalEnergies’ variable cost margin for European refineries jumps in the first quarter

(Reuters) – French energy company TotalEnergies’ variable cost margin for European refineries jumped to $87.8 dollar per tonne in the first quarter, the company said in a preliminary release of main indicators on Tuesday.

This indicator, which represents the average margin on variable costs realized by the group’s European refining business, compares with 46.3 dollars per tonne in the same period of 2022.

TotalEnergies also said its hydrocarbon production is expected to exceed 2.5 thousand barrels of oil equivalents per day (Mboe/d), benefiting from the start-up of gas production on Block 10 in Oman and the acquisition of an interest in the SARB and Umm Lulu oilfields in the United Arab Emirates.

The oil giant also expects results of the integrated LNG business will be impacted by te lower demand for LNG in Europe due to the mild winter weather and high inventory levels, it said, in addition to the effect of Russian gas firm Novatek’s deconsolidation from Jan. 1 2023.

TotalEnergies will publish its first-quarter results on April 27.

(Reporting by Diana Mandiá, Editing by Louise Heavens)