TOTALENERGIES’ FIRST-QUARTER PROFITS RISE SHARPLY AMID MIDDLE EAST TENSIONS
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TOTALENERGIES REPORTS SHARP RISE IN FIRST-QUARTER PROFITS AMID MIDDLE EAST CONFLICT
French oil and gas major TotalEnergies has announced a 51 percent increase in net profit for the first quarter, reaching $5.8 billion, driven largely by higher crude oil prices linked to ongoing conflict in the Middle East. The performance has, however, drawn criticism from climate advocacy groups.
The company said increased production in Brazil, Libya, and Australia helped offset output losses in the Gulf region, which typically accounts for about 15 percent of its oil and gas operations.
TotalEnergies also attributed the strong results to its ability to benefit from rising global energy prices.
Oil and gas output rose by four percent during the quarter, while liquefied natural gas shipments increased by 12 percent. The company also reported strong performance from its trading division.
In early April, reports indicated that TotalEnergies generated over $1 billion by purchasing most exportable crude cargoes in the Middle East, as geopolitical tensions involving US-Israeli strikes on Iran disrupted supply routes and pushed prices higher.
Environmental groups criticised the company’s earnings surge. Antoine Bouhey of Reclaim Finance described the gains as “war profits,” arguing they highlight continued global dependence on fossil fuels.
Greenpeace France also condemned what it called a “cynical logic,” saying ordinary consumers bear the brunt of rising fuel prices at the pump.
The price surge has reignited debate in Europe over taxing windfall profits from oil companies. French Prime Minister Sébastien Lecornu recently said he saw “no objection in principle” to such measures and urged TotalEnergies to consider redistributing excess earnings.
The company responded that it already contributes to consumer relief by limiting fuel price increases, stating, “That’s how we redistribute our profits.”
TotalEnergies also confirmed a partial restart of its Satorp refinery in eastern Saudi Arabia in mid-April after operations were suspended due to air strikes earlier in the month.
The group raised its dividend to €0.90 per share from €0.85, while its stock edged up slightly in Paris trading even as the broader CAC 40 index declined.
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