Published on : 28/07/2022 – 10:34Modified : 28/07/2022 – 10:32
Paris (AFP) – TotalEnergies reaped huge profits in the second quarter, taking full advantage of the rise in oil and gas prices, which followed the invasion of Ukraine by Russia, and reigniting the beginnings of a debate on the taxation of ” superprofits”.
The French group more than doubled its net profit in the second quarter, to 5.7 billion dollars, against 2.2 billion in the same quarter of 2021.
“The effects of Russia’s invasion of Ukraine on energy markets continued into the second quarter, with oil prices exceeding $110 per barrel on average in the quarter,” commented TotalEnergies CEO Patrick. Pouyanné, quoted in a press release from the group.
This surge in markets benefits the entire oil and gas industry globally. The British oil giant Shell thus published Thursday a net profit multiplied by five in the second quarter, to 18 billion dollars.
These massive profits have fueled a debate in France on the advisability of taxing them. The National Assembly, however, narrowly rejected on Saturday the idea of a tax on the “superprofits” or “exceptional profits” of large multinationals – in particular oil companies –, despite protests from the left and the far right.
Instead, TotalEnergies announced a discount of 20 euro cents per liter of fuel at the pump between September and November in all its service stations, then 10 cents per liter for the rest of the year.
Exceptional taxation rejected
“The government has refused an exceptional tax on profits linked to the rise in energy”, regretted Nupes-PS MP Valérie Rabault on Thursday, citing the adjusted half-year profit of 18.8 billion from TotalEnergies. “Compared to the 500 million granted for the reduction in the price at the pump”, she added on Twitter.
The environmental NGO 350.org for its part denounced a “staggering” profit, while “the oil giant is responsible for some of the most destructive fossil fuel projects on the planet”, citing in particular a controversial pipeline project in East Africa.
Symbolically, on this day of publication of flourishing results, some of the group’s employees were on strike at the call of the CGT, in order to “maintain the pressure” and demand wage increases taking inflation into account, according to Thierry Defresne, CGT secretary of the TotalEnergies SE European works council.
“The policy of return to the shareholder is reinforced through the growth of the dividend of 5% and the continuation of the share buyback program to the tune of 2 billion dollars in the third quarter”, underlined for his part the band.
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The profit for the second quarter was achieved despite a new provision of 3.5 billion dollars related to the potential impact of international sanctions on the value of the stake held in the Russian group Novatek, said TotalEnergies.
Excluding these exceptional items, adjusted net income reached 9.8 billion dollars for the quarter, against 3.5 billion a year earlier. Over the semester, it totaled 18.8 billion, almost triple that of the first half of 2021.
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