Income falls for Total Energies as refining profits slump
French oil company Total Energies posted a drop in second-quarter net income on Thursday, reflecting lower natural gas prices and slimmer refining margins in Europe as energy markets calm.
Adjusted net income fell to $5bn compared with $6.5bn in the first quarter, and $9.8 billion during the same period last year.
Analysts had expected $5.2bn in net income, according to a consensus established by Eikon Refinitiv.
Total confirmed some $2bn in share buybacks for the third quarter as expected.
The company’s average margin on oil refining more than halved to $42.7 per tonne compared to the first quarter, and was down more than two-thirds compared to the same time in 2022, when global refining profits surged in the wake of Russia’s invasion of Ukraine.
The company said European refining was impacted by higher Chinese exports and a quicker-than-expected reorganisation of Russian exports following an embargo on oil and oil products imposed by the European Union.
Reuters – America Hernandez