Finance
Total flags stronger refining margins, lower oil and gas sales in trading update
Published by Global Banking and Finance Review
Posted on January 20, 2026
2 min readLast updated: January 20, 2026
Quick Summary
TotalEnergies anticipates higher refining margins in Q4 2025, despite lower oil and LNG sales. European refining margins rose 231%, offsetting lower crude prices.
TotalEnergies Anticipates Stronger Refining Margins Amid Lower Oil Sales
TotalEnergies Trading Update Overview
By America Hernandez
Refining Margins and Oil Prices
Jan 20 - French oil major TotalEnergies expects lower oil and liquefied natural gas sales in the fourth quarter of 2025, but stronger downstream results, as higher refining margins help offset weaker crude and LNG prices.
Upstream and Integrated LNG Results
The company's European refining margin marker rose to $85.7 per metric ton in the fourth quarter of 2025, up 231% from a year earlier.
Impact of Renewable Assets on Cash Flow
In October TotalEnergies CEO Patrick Pouyanne said he expected refining margins in Europe to rise due to U.S. sanctions on Russian companies Rosneft and Lukoil and an EU ban on importing fuels refined from Russian oil.
"Once again, despite a year‑on‑year decline of more than $10 per barrel in oil prices, the cash flow from business segments this quarter is expected to remain at the same level as last year, supported by accretive Upstream production growth and continued improvement of Downstream results," it said in its quarterly trading statement.
Earlier this month BP and Shell flagged weak oil trading results, citing Brent crude prices, which dropped to $63.73 a barrel in the October-to-December period as oversupply fears hit markets.
TotalEnergies said it increased upstream oil and gas volumes to compensate for lower prices, leading to 5% year-on-year production growth. As a result, the decline in upstream results is expected to be around $6 per barrel, rather than the $11-per-barrel drop in crude prices.
Integrated LNG results will be in line with the third quarter of 2025 - which represents a roughly 40% drop from the fourth quarter 2024. That's partially due to LNG prices falling 18% year-on-year.
Integrated power cash flow is expected to rise, due to several minority stakes in renewable assets being sold down, leading the segment to achieve annual cash flow of $2.5 billion.
(Reporting by Dimitri Rhodes in Gdansk, Editing by Louise Heavens)
Key Takeaways
- •TotalEnergies expects lower oil and LNG sales in Q4 2025.
- •Refining margins are anticipated to increase significantly.
- •European refining margin marker rose to $85.7 per metric ton.
- •Higher refining margins offset lower crude prices.
- •TotalEnergies' downstream results are stronger despite sales drop.
Frequently Asked Questions about Total flags stronger refining margins, lower oil and gas sales in trading update
1What is liquefied natural gas (LNG)?
Liquefied natural gas (LNG) is natural gas that has been cooled to a liquid state for ease of storage and transport. It is primarily composed of methane.
2What are downstream results in the oil industry?
Downstream results refer to the financial performance of the oil industry related to refining, distribution, and sale of petroleum products, as opposed to upstream activities like exploration and production.
3What is crude oil?
Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. It is extracted from the ground and refined into various fuels.
4What is a quarterly performance report?
A quarterly performance report is a financial document that summarizes a company's performance over a three-month period, including revenue, expenses, and profit margins.
