TotalEnergies announced a 33% decline in its net profit for the first quarter, bringing the figure to $3.9 billion. This marks a significant drop compared to the same period last year, despite an increase in production. The French energy giant pointed to a 9% fall in global crude oil prices as the primary factor behind this dip, even though its crude oil production rose by 2% from the first quarter of 2024.
The decrease in profits reflects the broader challenges facing energy firms as oil prices have continued to decline due to global economic concerns. The ongoing tensions surrounding trade tariffs imposed by the US and fears of a slowdown in global demand have added pressure on prices.
Meanwhile, gas production for TotalEnergies saw a 6% increase, and the company benefited from a nearly 30% rise in gas prices. However, gains in liquefied natural gas (LNG) production were modest, growing by only 4%. Electricity production saw a robust 18% increase.
Despite the dip in profits, TotalEnergies’ CEO, Patrick Pouyanne, expressed confidence in the company’s strategy. He highlighted that the company would raise its first-quarter interim dividend by 7.6% and initiate up to $2 billion in share buybacks during the current quarter. The company has also maintained its investment outlook for the year, with projections ranging between $17 billion and $17.5 billion in net investments.
Looking ahead, TotalEnergies cautioned that oil prices would likely remain volatile, fluctuating between $60 and $70 per barrel. Refining and petrochemical margins are expected to remain weak due to continued uncertainty in the global market.
