Paris (AFP) – TotalEnergies said Wednesday that its net profit fell in the first quarter despite expanding production, as a slide in global crude oil prices penalizes the financial performance of energy firms. The French group reported that its first-quarter net profit came in at $3.9 billion, a third lower than the same period in 2024. However, the company noted that this result was broadly in line with the final quarter of last year.
TotalEnergies boosted crude oil production by two percent from the first quarter of 2024, but that wasn’t enough to compensate for a nine percent drop in the international reference price. Global crude prices have slid in recent months as stiff tariffs introduced by US President Donald Trump’s administration have sparked concerns about a slowdown in the global economy that could impact demand. Gas production climbed by six percent, with prices rising by nearly 30 percent. The gain for liquefied natural gas (LNG) was only four percent, however.
TotalEnergies also boosted electricity production by 18 percent. Chief executive Patrick Pouyanne stated that “despite a softening price environment with Brent below $70 per barrel since the beginning of April and an uncertain geopolitical and macroeconomic context,” TotalEnergies had decided to increase its first quarter interim dividend by 7.6 percent and proceed with up to two billion dollars in share buybacks during the current quarter.
The company maintained its outlook for between $17 and $17.5 billion in net investments this year. Given the economic uncertainty and OPEC+ nations boosting output, it noted that oil prices are volatile “between $60 and $70 per barrel and refining and petrochemical margins are expected to remain weak.”
© 2024 AFP
