Total’s “super profits” have already been discussed. The announcement on Thursday, July 28 brings it back to life: The group generated net income of $5.7 billion (€5.6 billion) in the second quarter of 2022. That’s more than double what it was in the second quarter of 2021 ($2.2 billion). A situation related to the war in Ukraine and its impact on prices.
“The impact of the Russian invasion of Ukraine on energy markets continued into the second quarter, with oil prices rising to over $110 per barrel on average during the quarter.”, recalled the CEO of TotalEnergies, Patrick Pouyanné, quoted in a press release from the group. The entire oil and gas sector benefits from this: Shell announced a fivefold profit in the second quarter.
That gain came despite a new $3.5 billion provision related to the potential impact of international sanctions on the value of its stake in Russian group Novatek, TotalEnergies said in a press release.
These massive gains have fueled a debate in France about the advisability of taxing them. However, the National Assembly narrowly rejected the idea of a tax on Saturday “super wins” Where “windfall gains” large multinationals – especially oil majors – despite protests from the left and far right.
This refusal was followed by TotalEnergies’ announcement that it would offer a 20 cent per liter fuel discount at the pump at all service stations between September and November, and then 10 cents per liter for the rest of the year.
On Thursday, TotalEnergies’ announcement drew a reaction from Socialist Vice-President of the National Assembly Valérie Rabault, who expressed regret on twitter that profits linked to energy prices are not subject to a special tax. For her part, the president of the Renaissance group, Aurore Bergé, appreciated on franceinfo that France should keep her “an attractive fiscal framework”.
the @governmentFR opposed an extraordinary taxation of gains related to the rise in energy
Here are the results published by TotalEnergies
↗️ Profit at 18.7 billion at the end of June, ×3 compared to 6/21
To compare with the 500 million granted for lowering the price at the pump pic.twitter.com/jTDM6kZkcH
— Valerie Rabault (@Valerie_Rabault) July 28, 2022