TotalEnergies Posts $3.6 Billion Q2 Profit Amid Oil Price Slide

Jul 24, 2025

TotalEnergies posted a solid second-quarter 2025 performance, generating $6.6 billion in cash flow from operations despite a 10% drop in Brent crude prices. The French energy major recorded an adjusted net income of $3.6 billion, down 15% quarter-on-quarter, driven by softer commodity prices but partially offset by higher production volumes.

Strategic Execution

TotalEnergies’ output grew over 3% year-on-year to 2.53 million barrels of oil equivalent per day (Mboe/d), bolstered by early production from the Ballymore field in the U.S. and Mero-4 in Brazil. Power generation also saw a notable 20% year-over-year rise to nearly 23 TWh, underscoring momentum in renewables and gas-fired power assets.

Segmental performance highlights:

• Exploration & Production: Delivered $2.0 billion in adjusted operating income with strong contributions from new project ramp-ups.
• Integrated LNG: Posted $1.0 billion in operating income, impacted by lower LNG prices aligned with oil trends.
• Integrated Power: Produced 11.6 TWh and achieved $0.6 billion in operating income; gross renewables capacity grew to 30.2 GW.
• Downstream: Refining & Chemicals and Marketing & Services together brought in $0.8 billion in operating income, helped by seasonal retail strength and modest margin recovery.

Capital Discipline & Shareholder Returns

Total net investments reached $11.6 billion in H1 2025, including $2.2 billion in acquisitions—most notably the purchase of German renewables firm VSB and stakes in offshore exploration leases from Chevron. Despite elevated capex, TotalEnergies reaffirmed its annual investment target of $17–17.5 billion.

The Board approved a second interim dividend of €0.85/share, marking a 7.6% increase year-on-year. Share buybacks worth up to $2 billion are planned for Q3, building on $3.7 billion repurchased in H1. Notably, employee shareholding rose to nearly 9%, reinforcing internal alignment with the company’s transition strategy.

Portfolio Optimization and Expansion

The company continued rebalancing its portfolio, shedding non-core interests in Nigeria and Brazil while acquiring exploration blocks across the U.S., Southeast Asia, and Suriname. In LNG, it secured long-term offtake from Rio Grande LNG (Train 4) and a future stake in Canada’s Ksi Lisims LNG.

In renewables, TotalEnergies completed acquisitions in the Dominican Republic and the UK, secured a 1 GW offshore wind concession in Germany, and expanded its solar and battery storage footprint in Asia.

Looking ahead, the company expects over 3% production growth in Q3 versus the prior year, with average LNG prices projected at $9–$9.5/MMBtu. Despite market volatility from OPEC+ dynamics and soft macro demand, TotalEnergies maintains confidence in meeting its 2025 growth targets while upholding capital discipline.

Oilprice.com: