TotalEnergies reported a 6% decrease in its Q2 earnings, primarily attributed to weaker performance in the refined products and gas sales segments.
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TotalEnergies, a prominent French oil company, disclosed a 6% decline in its second-quarter earnings on Thursday, primarily attributed to diminished sales of refined products and gas.
The adjusted net income for the period ending June 30th
amounted to $4.7 billion, marking a decrease from the $4.96 billion recorded in
the corresponding quarter of the previous year and the $5.1 billion achieved in
the first quarter.
Notably, this outcome fell short of the $4.96 billion
consensus estimate projected by analysts in a compilation by LSEG.
Total, the primary source of its revenue being oil and gas
production and sales, is the initial Western oil major to announce its
first-half financial outcomes.
Biraj Borkhataria, the leader of global energy transition
research at RBC Europe, expressed that the outcomes were "slightly
underwhelming."
Profits in the past few quarters have decreased from the
2022 peak, which was driven by a surge in energy prices after Russia's invasion
of Ukraine. However, they still surpass the levels before the pandemic due to
the continuous increase in demand, particularly for seaborne liquefied natural
gas (LNG).
Nevertheless, reduced demand for refined products is
adversely affecting profits.
The company reported in a statement that ongoing low diesel
demand in Europe, coupled with lower prices resulting from the normalization of
market volatility caused by the disruption of Russian supply, continues to
impact refining margins.
Despite these challenges, the company announced its
intention to repurchase up to $2 billion worth of shares during the third
quarter.
Additionally, it reaffirmed its net investment guidance of
between $17 billion and $18 billion for the current year.