Rising energy prices: TotalEnergies’ profit has more than doubled within a year

This is one of the most notorious consequences of the Russian invasion of Ukraine. French oil majors TotalEnergies and British Shell saw their net profits increase in the second quarter of 2022 on the back of a general surge in electricity and gas prices, according to figures released on Thursday, July 28.

As a result, TotalEnergies’ net profit share more than doubled to $5.7 billion in a year. Shell’s increased fivefold to reach $18 billion over the same period.

Direct consequence of the war in Ukraine

Regarding the French group, the profit was made despite a new $3.5 billion provision related to the possible impact of international sanctions on the value of its stake of up to 19.4% in the Russian company Novatek, the group explained in a press release.

Over the half-year, the group made a total profit of 18.8 billion euros, almost three times as much as in the first half of 2021.

In addition to the rise in hydrocarbon prices, Shell’s results benefited from a $4.3 billion release of provisions after the major revised upwards its forecasts for medium- and long-term oil and gas prices.

“The impact of the Russian invasion of Ukraine on energy markets continued into the second quarter, with oil prices topping $110 per barrel on average during the quarter.”comments TotalEnergies Chairman and Chief Executive Officer (CEO), Patrick Pouyanné, in the press release.

This increase in markets benefits the entire oil and gas industry worldwide. For example, Norwegian energy giant Equinor said on Wednesday it had net income of nearly $6.8 billion in the second quarter, up from $1.9 billion for the same period in 2021, a result that has nearly quadrupled.

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An advantage that is decried by environmental groups and leftists

In France, in the context of exceptional circumstances, these results have sparked a political debate on the advisability of their taxation. However, the National Assembly narrowly rejected the idea of ​​a tax on Saturday “super wins” Where “windfall gains” Multinationals – particularly gas and oil – despite protests from the left and far right and the fact that some LR MPs have called for such a measure.

Instead, at the government’s suggestion, TotalEnergies announced a new discount of 20 cents per liter of fuel at the pump between September and November at its petrol stations in France. In June, the company had already granted an increase in its discount on a liter of fuel from 10 to 12 cents.

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“Government rejected extraordinary tax on profits related to energy surge”deplored the Socialist MP and Vice-President of the National Assembly Valérie Rabault on Thursday on twitter.

Citing TotalEnergies’ $18.8 billion semi-annual adjusted earnings, she is miffed by the amount “compared to the 500 million granted for reducing the price at the pump” from the French group.

For its part, the environmental NGO 350.org denounced a result “Graduation”whereas “The oil giant is responsible for some of the most destructive fossil fuel projects on the planet”particularly citing the company’s controversial pipeline project in East Africa.

Symbolically, on the day of the publication of thriving results, some employees of the group went on strike at the call of the General Confederation of Trade Unions (CGT) to strike “Keep the pressure up” on the management and wage increases taking inflation into account, according to Thierry Defresne, CGT secretary of the European works council TotalEnergies SE.

The world with AFP

Kaddouri Ismail

I am Ismail from Morocco, I work as a blogger and online marketer. I am also the founder of the “Mofid” site, in which I constantly publish many important articles in the field of technology, taking advantage of more than 5 years of experience working in the field. I focus on publishing in a group of areas, the most important of which are programming, e-marketing, digital currencies and freelance work.

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