Lower prices for oil and liquefied natural gas will weigh on French oil major TotalEnergies’ second-quarter earnings, even as its hydrocarbon production rose slightly, it said in a trading update on Wednesday.
Total’s hydrocarbon production in the second quarter of 2025 will show an increase of around 2.5 per cent year-on-year, it said.
But a 20 per cent drop in the Brent crude price – from $85 per barrel a year ago to $67.9 per barrel in the second quarter of 2025 – means earnings for upstream will be lower.
Crude oil prices fell in the second quarter as OPEC+, made up of the Organization of the Petroleum Exporting Countries and allies such as Russia, started to unwind self-imposed production cuts of 2.17 million barrels per day in April.
TotalEnergies’ shares were up 0.06 per cent at 0923 CET. Jefferies analyst Giacomo Romeo said the earnings preview was in line with consensus expectations.
Last week BP flagged lower oil and gas sales, while Shell warned of lower gas trading earnings and a hit to its downstream chemicals business.
Total said lower LNG prices and decreased price volatility resulted in its traders earning less than both last quarter and the second quarter of 2024.
Downstream sales of refined fuels are expected to be flat compared to a year ago, when they earned $379 million.
The integrated power business is expected to bring in between $500 million and $550 million, compared to $506 million a year ago.
Refining and chemicals earnings are expected to reflect a slight climb in margins for refining crude over the first half of 2025, but overall Total’s refining margin is still down 21 per cent compared to a year ago.
The company is due to report second-quarter results on July 24.>
