TotalEnergies first-quarter profits surge amid Middle East war
TotalEnergies Reports 51% Increase in First-Quarter Profit
TotalEnergies announced Wednesday that its net profit surged 51% in the first quarter, reaching $5.8 billion. The spike in earnings is attributed to rising oil prices amid ongoing conflict in the Middle East, which has drawn criticism from environmental groups.
The company’s oil and gas output increased by 4% during the quarter, with significant production growth in Brazil, Libya, and Australia offsetting losses in the Gulf region, typically responsible for 15% of TotalEnergies’ total oil and gas operations. The statement emphasized the company’s capacity to benefit from rising prices, with liquefied natural gas transported by sea increasing by 12%.
TotalEnergies also reported strong performance from its trading division. In early April, the Financial Times revealed that the company generated over $1 billion by acquiring nearly all exportable oil cargoes from the Middle East amid heightened tensions following U.S.-Israeli attacks on Iran, which closed the vital Strait of Hormuz and contributed to soaring oil prices.
Critics have voiced concerns over what they term “war profits.” Antoine Bouhey, campaign coordinator at Reclaim Finance, commented that such profits underscore society’s reliance on fossil fuels and highlight the disparity between shareholder gains and consumer expenses.
Greenpeace France condemned what it described as a “cynical logic” in the context of rising prices at the pump.
The surge in gas prices has reignited a political discussion in Europe regarding potential taxes on windfall profits related to increased oil prices. French Prime Minister Sébastien Lecornu expressed a conditional openness to this idea earlier in April.
Additionally, TotalEnergies reported that it partially resumed operations at its Satorp refinery in eastern Saudi Arabia in mid-April, following a suspension due to air strikes earlier that month. The company also raised its dividend from 0.85 euros to 0.90 euros per share.
