TotalEnergies’ profits fall to lowest level in 4 years

TotalEnergies reported a 23% drop in its second-quarter earnings, marking its weakest quarterly performance in four years, as lower oil and gas prices outweighed gains from higher upstream production.

Adjusted net income fell to $3.6 billion for the quarter ending June 30, down from $4.7 billion a year earlier and $4.2 billion in the first quarter.

Despite the earnings drop, the French energy giant said it will continue its $2 billion share buyback program in the third quarter.

Earnings from the refining and chemicals segment fell by 39% year-on-year, while profits from its integrated LNG business dropped almost 10% compared to the previous year and were 20% lower than the previous quarter. TotalEnergies stated that the decline was due to lower prices and reduced market volatility, which limited trading opportunities.

On a positive note, the company’s integrated energy division recorded a 14% increase in its profits compared to the same period last year, reaching $574 million and exceeding expectations.

Looking ahead, TotalEnergies anticipates a 3% increase in hydrocarbon production in the third quarter compared to the same period in 2024, in line with its annual target of more than 3% production growth.

Net investments for the full year are expected to remain within the previously indicated range of $17-17.5 billion.