TotalEnergies’ Profit Declines Slightly on Resilient Oil Market

TotalEnergies SE Defies Expectations with Strong First-Quarter Profit Amid Gas Price Slump

In a surprising turn of events, TotalEnergies SE has reported a smaller-than-expected drop in first-quarter profit, defying the odds in the face of lower gas prices. The French energy giant’s resilience in the oil market has partly offset the impact of Europe’s weaker gas market, which has been struggling due to a mild winter that reduced heating demand.

Despite the challenges posed by the gas market, TotalEnergies CEO Patrick Pouyanne remains optimistic about the company’s performance. “The earnings reflect a context of sustained oil prices and refining margins but softening gas prices,” Pouyanne said in a statement.

TotalEnergies reported an adjusted net income of $5.11 billion for the period, down from $6.54 billion a year earlier. While this represents a decline, it exceeded analysts’ expectations of $5.0 billion. The company also announced an interim dividend increase of almost 7% and plans to buy back $2 billion of its shares in the second quarter.

Sales of liquefied natural gas (LNG) dropped 3% from a year earlier, primarily due to lower demand in Europe. However, TotalEnergies anticipates a rebound in consumption in Asia, which is expected to drive up prices by almost a quarter next winter.

Despite challenges in the hydrocarbon segment, TotalEnergies remains focused on its power business, with plans to invest $17 billion to $18 billion by 2024, including $5 billion in renewable and gas-fired power projects. The company’s stock remained stable in early Paris trading, reflecting investor confidence in its strategic direction.