Latest news with #PatrickPouyanne
Yahoo
5 days ago
- Business
- Yahoo
TotalEnergies' quarterly earnings drop amid market challenges
French oil giant TotalEnergies' adjusted net income fell to $3.6bn (€3.07bn) for the second quarter of 2025 (Q2 2025), down from $4.7bn in the same period last year. The decline was attributed to lower oil and gas prices, which overshadowed gains from increased production and power sales. The company's first-half adjusted net income stood at $7.8bn. Net debt surged by 89% compared to the previous year, reaching $25.9bn. This increase in debt pushed the gearing ratio, including leases, to 22.6%. Despite this, TotalEnergies continued its share buyback programme, extending a $2bn buyback into Q3. CEO Patrick Pouyanne clarified that the company's normalised gearing ratio, which measures debt to equity, stood at 15%, reported Reuters. He assured that this figure would remain stable throughout the year, bolstered by the anticipated $3.5bn in proceeds from the sale of renewable asset stakes and the disposal of mature oil and gas assets in Nigeria, Brazil and other regions. Despite a 14% rise in quarterly profit to $574m in TotalEnergies' integrated power business, this was not enough to counteract weaker performances in other divisions. The refining and chemicals segment saw earnings plummet by 39% from the previous year. The refining margin for converting crude into fuels also dropped by 21% year-on-year (YoY) to $35.3 per tonne (t), although there is an expectation that margins will improve to above $50/t in Q3 due to heightened fuel demand during Europe's summer driving season. The integrated liquefied natural gas (LNG) unit reported a 9.6% decrease in profit YoY and a 20% fall from Q1 2025. The subdued prices and lack of volatility restricted traders' ability to capitalise on price fluctuations. Looking ahead, TotalEnergies forecasts a 3% rise in hydrocarbon production in Q3 compared with the same period last year. Earlier this month, the Government of Mozambique established essential conditions for the revival of TotalEnergies' $20bn LNG project. The project, which was suspended in 2021 because of an insurgency linked to the Islamic State, is now set to resume. "TotalEnergies' quarterly earnings drop amid market challenges" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Why TotalEnergies Stock Slumped Today
Key Points TotalEnergies beat on revenue for the quarter, but fell short of the consensus analyst estimate for profitability. Not surprisingly, it was affected by the slump in global oil prices. 10 stocks we like better than TotalEnergies › The stock market wasn't particularly energetic when it came to fuel and chemicals conglomerate TotalEnergies (NYSE: TTE) on Thursday. The company's stock took a hit following its release of second-quarter earnings, and it closed the day down almost 3%. Other stocks did better, as the S&P 500 (SNPINDEX: ^GSPC) eked out a marginal gain. Oil price slump TotalEnergies, which is headquartered in France but reports in the energy industry's standard currency of U.S. dollars, published its latest set of financial figures that morning. The company's net revenue was slightly under $44.7 billion, comparing unfavorably to the nearly $49.2 billion it booked in the same period of 2024. That top-line result was more than high enough to trounce the average analyst estimate, which was a bit under $39.9 billion. Yet the erosion in non-GAAP (generally accepted accounting principles) adjusted net income was more drastic. That critical line item fell by 21% year over year to $3.6 billion ($1.57 per share). Worse, that per-share figure was notably below the consensus pundit projection of $1.67. TotalEnergies suffered from a general decline in oil prices, which it said slid by 10% during the quarter. It put a positive spin on its recent struggles by quoting CEO Patrick Pouyanne as saying that the company "continued to successfully execute its balanced multi-energy strategy, supported by sustained growth in hydrocarbon and electricity production." A gloomy outlook In TotalEnergies's outlook for the current (third) quarter, the company waxed bearish about the prospects for its industry. It said that due to geopolitical and economic developments, oil prices are volatile at the moment, with the industry coping with an "abundant" supply (which, all things being equal, tends to dampen prices). While it forecast that it would spend a net amount of $17 billion to $17.5 billion in investments over the course of this year, it did not provide any revenue or profitability guidance in its earnings release. Should you buy stock in TotalEnergies right now? Before you buy stock in TotalEnergies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TotalEnergies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why TotalEnergies Stock Slumped Today was originally published by The Motley Fool
Reuters
6 days ago
- Business
- Reuters
TotalEnergies maintains buybacks despite profit drop, rising debt
PARIS, July 24 (Reuters) - TotalEnergies ( opens new tab reported a 23% fall in second-quarter earnings on Thursday, the French oil major's worst performance in four years but in line with expectations, as lower oil and gas prices outweighed a rise in production and power sales. Adjusted net income fell to $3.6 billion for the three months to June 30, down from $4.7 billion a year earlier and $4.2 billion in the first quarter. Shares were down 4.1% to 51.17 euros at 1335 GMT. CEO Patrick Pouyanne told analysts on a call that the company could maintain shareholder returns in a low oil price environment, as several expressed concern about a sharp increase in the company's net debt. Brent crude prices have fallen 20% from a year ago, reaching $67.9 per barrel in the second quarter of 2025, as members of the Organization of the Petroleum Exporting Countries and allies such as Russia started to unwind output cuts of 2.17 million barrels per day in April. TotalEnergies' net debt leapt 89% year-on-year to $25.9 billion, pushing gearing - a measure of debt to equity - to 22.6% including leases, as the company made $2 billion of acquisitions and saw its working capital increase - even as it extended a $2 billion share buyback into the third quarter. "We have a strong balance sheet ... and we are committed to $2 billion in quarterly buybacks at $70 per barrel," Pouyanne said on a call with analysts. The CEO added that according to the company's definition of normalised gearing, the ratio of debt to equity was 15%. He said that 15% figure would not increase this year, as the company finalised sales of stakes in renewable assets and disposals of mature oil and gas assets in Nigeria, Brazil and other areas, expected to bring in some $3.5 billion. TotalEnergies' integrated power business beat forecasts with a 14% rise in quarterly profit to $574 million, but was unable to offset poorer performance across nearly all other units. Refining and chemicals earnings fell 39% from a year ago, the company said. TotalEnergies' margin for refining crude into fuels dropped 21% from a year ago to $35.3 per ton, despite a slow recovery in the first half of 2025 from a collapse last year due to sagging demand and an increase in global competition. The company said it expected refining margins to rise above $50 per ton in the third quarter due to increased fuel demand during Europe's summer driving season. Profit from its integrated liquefied natural gas unit was down 9.6% year-on-year and 20% lower than the first quarter of 2025, as lower prices and less volatility meant traders could not profit from price changes. TotalEnergies also forecast a 3% increase in hydrocarbon output in the third quarter against the same period a year ago.
Bloomberg
6 days ago
- Business
- Bloomberg
Diesel Is Soaring on Sanctions and Wrong Type of Oil, Total Says
European Union measures to restrict imports of Russian fuel and surging supplies of lighter crude are driving diesel up prices across the world, the boss of Europe's largest oil refiner said. Diesel futures in Europe have surged at times in recent weeks, touching the equivalent of $110 a barrel. That's in part because traders are having to find supplies from further afield since a ban on Russian imports came into effect, Patrick Pouyanne, Chief Executive Officer of TotalEnergies SE said on the company's second-quarter earnings call.
Yahoo
6 days ago
- Business
- Yahoo
TotalEnergies net profit drops as oil prices fall
TotalEnergies said Thursday its net profit plunged in the second quarter despite increased output as global oil and gas prices dropped. Despite the 29 percent year-on-year drop in net profit in the second quarter to $2.7 billion, the French firm called its performance "robust". It kept its revenue drop to 7.6 percent, to $49.6 billion, below the 10 percent fall in the price of Brent crude oil, the international benchmark. That was thanks in part to a 2.5 percent boost in output, to an average 2.5 million barrels of oil equivalent in the second quarter. 'TotalEnergies delivered robust financial results in the second quarter," chief executive Patrick Pouyanne said in a statement. "TotalEnergies continued to successfully execute its balanced multi-energy strategy, supported by sustained growth in hydrocarbon and electricity production," he added. The company confirmed a second interim dividend of 0.85 euros per shares, an increase of almost 7.6 percent from last year, and up to $2 billion in share buybacks in this quarter. nal/rl/yad Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
