By America Hernandez
PARIS -French oil major TotalEnergies reported a 18% drop in adjusted net income for the first quarter to $4.2 billion, slightly short of expectations, as earnings fell across all business segments except liquefied natural gas (LNG).
Analysts had expected $4.3 billion, according to a consensus compiled by LSEG Refinitiv.
Despite boosting oil and gas production 4% compared to a year ago, upstream profits are still 6% down due to the lower oil price.
TotalEnergies said, however, it would continue share buybacks for up to $2 billion in the second quarter, despite Brent crude prices falling below $70 per barrel this month.
Its shares were down 3.7% at 0919 CET.
Income from Total’s refining and chemicals segment was down 69% from the same period last year, slightly lower than what the firm had flagged in its trading update earlier this month.
Profit margins on refining oil into fuels in Europe have risen over the past six months but are still 59% lower than a year ago, largely due to weak demand and new competition from Asian and African refineries.
Earnings from marketing and services were 6% down from a year ago but 34% down from the fourth quarter of 2024, which TotalEnergies attributed to the seasonality of the business.
Integrated LNG earnings are up 6% year-on-year, but 10% lower than the fourth quarter of 2024.
Earlier this week British peer BP reported a 48% profit drop on weaker refining and natural gas trading, while Portugal’s Galp posted a 29% drop in first-quarter earnings citing low refining margins and falling oil prices.
Unlike BP, Shell and Equinor, TotalEnergies has stuck to its strategy of increasing its renewable energy holdings as it grows its legacy oil and gas business.
(Reporting by America Hernandez in Paris, Editing by Louise Heavens and Aidan Lewis)
Comments