TotalEnergies Posts 13% Drop in Fourth-Quarter Profit

French oil major TotalEnergies reported a 13% drop in fourth-quarter earnings on Wednesday, slightly missing expectations, as soaring margins on refining fuels and cash from selling stakes in renewable assets failed to offset lower oil and gas prices.

Total reported fourth-quarter adjusted net income of $3.8 billion (3.2 billion euros), versus $4.4 billion a year earlier. Analysts had expected $3.9 billion, according to a consensus compiled by LSEG.

In a year marked by a near-doubling of its debt due to a string of acquisitions, Total trimmed its share buybacks and ramped up oil and gas production in the fourth quarter to try and compensate for a 15% drop in Brent crude prices and an 18% drop in liquefied natural gas prices, as signs of a global oversupply depressed markets.

The company said it had boosted production in the quarter by 5% but income from the exploration segment still fell 21.6% to $1.8 billion. Meanwhile earnings for the refining and chemicals business surged by 215%, reaching $1 billion.

TotalEnergies has previously said margins at European refineries during the period soared 231% compared to