Investing.com -- TotalEnergies SE (NYSE: TTE) (EPA:TTEF) said Thursday it expects a meaningful boost to first-quarter earnings from higher oil and gas prices and strong trading activity, even though the ongoing conflict in the Middle East continues to weigh on its production.

The company’s U.S.-listed shares rose about 3% in premarket trading by 04:30 ET.

The French energy major said it expects first-quarter output to hold roughly flat with the prior quarter at around 2.55 million barrels of oil equivalent per day.

New project startups — notably fields in Libya and Brazil — are helping offset the roughly 100,000 barrels per day of lost production stemming from the Middle East conflict, which has forced the company to curtail or shut down operations in Qatar, Iraq and offshore UAE. A refinery complex in Saudi Arabia was also recently closed after sustaining damage.

Despite the production headwinds, TotalEnergies flagged a significant expected rise in exploration and production earnings, with higher hydrocarbon prices adding an estimated $2 billion to $2.5 billion to working capital for the quarter.

Liquified natural gas (LNG) results are also expected to come in significantly higher than the fourth quarter, driven by 10% production growth and strong trading activity benefiting from market volatility.

The company’s European refining margins during the quarter were solid at $11.40 per ton, well above consensus estimates, with utilization above 90%.

Integrated Power results are expected at around $500 million, roughly flat on the year, with Marketing and Services also tracking in line with a year ago.

Jefferies analyst Mark Wilson described the update as a "small positive," noting that TotalEnergies appears to be navigating the working capital pressures that have weighed on peers, including Shell and BP.

The analyst said he sees potential for a roughly 10% beat to first-quarter consensus net income of €4.8 billion, with LNG trading the key upside driver.

TotalEnergies is due to report full first-quarter results on April 29.