5.7 billion in record profit in the quarter thanks to hydrocarbon growth

Amid controversy over the taxation of “superprofits” linked to the battle in Ukraine, TotalEnergies is posting distinctive outcomes. Its adjusted web revenue was $9.8 billion, or greater than $18 billion in the half 12 months, the firm reported Thursday, pushed by a world rise in oil and gasoline costs. ” It is sort of a record stated Ahmed Ben Salem, oil and gasoline analyst at Odo BHF. In truth, the present disaster has allowed it to reap nice revenues and explode its income.

“The affect of Russia’s aggression in Ukraine on vitality markets continued into the second quarter, with oil costs averaging over $110 per barrel throughout the quarter,” CEO Patrick Pouanne stated in a press launch.

Nevertheless, the predominant subscribed a brand new provision of three.5 billion {dollars} in its account for the second quarter, which is related to the potential affect of worldwide sanctions on the worth of the stake of the Russian group Novatek (of which 19, 4% of the Tricolor Group). share). But even taking this distinctive merchandise into consideration, the firm’s web revenue nonetheless reached $5.7 billion, greater than double from the second quarter of 2021.

Enough to show Patrick Poyan proper, who assured at the finish of March that the group’s publicity to Russia was lastly ” Very manageable ” Indeed, in the 4 corners of the world, the firm continues its momentum after a record profit of 16 billion {dollars} for 2021 (the highest for at the least fifteen years). In quick, removed from weakening its funds, the French hydrocarbon large continues to be making some huge cash.

Not above market expectations

That’s greater than stable well being permitting it to increase share buyback targets and preserve the dividend growth that administration promised shareholders. “ The group had deliberate 4 billion share buybacks this 12 months. But with fossil gas costs rising, actuality has outstripped expectations “, notes Ahmed Ben Salem. Result: Total Energy ” 3 billion have already been bought in the first half of the 12 months », and introduced a further 2 billion in the subsequent quarter. ” If this continues till the finish of the 12 months, we’ll moderately be about 7 billion! », analysts speculate.

However, the announcement was not adopted by a rally in the inventory, because it fell 2.83% at the inventory market open on Thursday. ” There is a few disappointment with the indisputable fact that the outcomes are totally in line with market expectations and never a lot towards the first quarter. “, underlines Ahmed Ben Salem. In truth, in the first three months of the 12 months, the group achieved a web profit of 4.9 billion {dollars}, or 12% greater than analysts’ forecasts.

TotalEnergies’ good outcomes permit it to put together for an exit from Russia

No profit tax

In France, these monster income are fueling mistrust. Amendments to the distinctive tax on company superprofits had been thus introduced to the National Assembly, primarily by Nupes and RN. But the textual content was lastly rejected by deputies on Saturday 23 July. In concrete phrases, these are a “ 25% distinctive tax On the tremendous income of oil and gasoline firms, transport firms and motorway concessionaires in the context of the vitality disaster linked to the battle in Ukraine.

Under stress, TotalEnergies has tried to take the lead, and introduced a couple of days in the past that it could apply a pump low cost of 20 centimeter per liter in any respect its service stations between September and November, adopted by a ten centimeter per liter low cost in the relaxation. 12 months. A rebate that isn’t comparable to a tax, this feature is being dominated out by the authorities for now.

A tax on superprofits, the actual sword of Damocles for firms