TotalEnergies reported flat third-quarter earnings compared to last year, with higher production and strong refining margins offsetting a 10% decline in oil prices. Adjusted net income stood at $4 billion, in line with analyst expectations. Cash flow from operations rose to $7.1 billion, up 7% from Q2.

The Exploration & Production division saw a 10% increase in adjusted net income and a 6% increase in cash flow from the previous quarter. TotalEnergies captured improved refining margins in Europe, leading to a $500 million jump in downstream adjusted net operating income and cash flow.

Refining margins across TotalEnergies’ operations soared by 78% in Q3, with margins remaining above $50 per ton at the start of Q4. Europe has faced diesel supply disruptions due to sanctions against Russia’s top oil producers and refiners.

In response to market disruptions, Europe has scrambled for middle distillate supply as the EU closed a loophole in sanctions against Russia. U.S. sanctions on Rosneft and Lukoil have further impacted diesel imports.

Read more at Yahoo Finance: TotalEnergies Q3 Earnings Hold Steady Despite Oil Price Dip