TotalEnergies: Record quarterly profit of 5.7 billion thanks to hydrocarbon surge

Amid a debate over taxing “super profits” linked to the war in Ukraine, TotalEnergies reports extraordinary results. Adjusted net income was $9.8 billion, or more than $18 billion, more than half, driven by the global rise in oil and gas prices, the company said on Thursday. ” It’s almost a record says Ahmed Ben Salem, Oil & Gas Analyst at Oddo BHF. In fact, the current crisis allows it to generate fabulous earnings and explode its profits.

“The impact of the Russian invasion of Ukraine on energy markets continued in the second quarter, with oil prices topping $110 per barrel on average over the quarter,” CEO Patrick Pouyanné said in a press release.

The major has nonetheless written a new $3.5 billion provision in its second-quarter accounts related to the potential impact of international sanctions on the value of its stake in Russian group Novatek (of which Tricolor group has 19, 4% holding) is connected to the shares). But even including this extraordinary item, the company’s net income still reached $5.7 billion, more than doubling from the second quarter of 2021.

Enough to agree with Patrick Pouyanné, who assured at the end of March that the group’s involvement in Russia was finally ” very manageable “. In fact, the company continues its momentum in all corners of the world, having achieved record profits of $16 billion for 2021 (the highest in at least fifteen years). In short, far from weakening its financial situation too see, the French hydrocarbon giant is still making big bucks.

Not above market expectations

This more-than-solid health allows the company to raise its share buyback target and maintain the dividend increase that management promised shareholders. “ The group had planned 4 billion share buybacks this year. But reality exceeded expectations as fossil fuel prices soared ‘ remarks Ahmed Ben Salem. Result: TotalEnergies” has already bought 3 billion in the first half of the year » and announced another 2 billion for the next quarter. ” If this continues through the end of the year, we’ll be closer to 7 billion! », estimates the analyst.

The announcement wasn’t followed by a surge in the stock, however, as it fell 2.83% at the stock market open on Thursday. ” There is some disappointment that the results are exactly in line with market expectations and no higher than in the first quarter ’” emphasizes Ahmed Ben Salem. In fact, the group had made $4.9 billion in net income for the first three months of the year, up 12% from analysts’ forecasts.

TotalEnergies’ good results make it possible to prepare for the exit from Russia

No profit tax

In France, these monster profits fuel distrust. Amendments to the special taxation of super profits from companies were therefore brought to the National Assembly primarily by the Nupes and the RN. But the texts were eventually narrowly rejected by MPs on Saturday 23 July. Specifically, they saw the establishment of a “ special tax of 25% about the super profits of oil and gas companies, shipping companies and highway concessionaires in connection with the energy crisis related to the war in Ukraine.

Under pressure, TotalEnergies has tried to take the lead, announcing a few days ago that it will offer a discount of 20 centimes per liter at the pump between September and November at all petrol stations, then 10 centimes per liter per year at the remaining petrol stations. A reimbursement, which is not like a tax, the remaining possibility is excluded by the government for the time being.

The tax on super profits, a real sword of Damocles for companies