While motorists looked gray when they went to the gas station to fill up with fuel, TotalEnergies largely benefited from the rise in oil and gas prices with the war in Ukraine. The group recorded a profit of 5.7 billion euros in the second quarter, which more than doubled over a year. And this despite a new provision of 3.5 billion dollars linked to the potential impact of international sanctions on the value of its stake in the Russian group Novatek.
While the group’s hydrocarbon production remained stable, totaling 2.738 million barrels of oil equivalent per day, “the effects of Russia’s invasion of Ukraine on energy markets continued in the second quarter, oil prices oil exceeding 110 dollars per barrel on average over the quarter, refining margins reaching exceptionally high levels (Editor’s note: after a loss of one billion in 2020 and 2021 with the Covid), gas prices remaining above oil parities in Europe and Asia,” explained CEO Patrick Pouyanné.
Shell’s group share of net profit was multiplied by five, to 18 billion dollars. And that of TotalEnergies has more than doubled over one year, to 5.7 billion dollars. In addition to the rise in hydrocarbon prices, Shell’s results benefited from a reversal of provisions of 4.3 billion dollars, after the major revised upwards its medium and long-term oil and gas price projections. .
A massive fuel price reduction program
Regarding TotalEnergies, the profit was made despite a new provision of 3.5 billion dollars linked to the potential impact of international sanctions on the value of its stake in Russian Novatek, the group said in a press release.
Perhaps anticipating these good results which will perhaps make some of the political class react, TotalEnergies announced that it was going to embark on a massive fuel price reduction program until the end of the year in all its service stations in France. From September 1 to November 1, TotalEnergies will thus lower the price of petroleum fuels sold in stations by 20 euro cents per liter compared to the prices formed on international market quotations, then by 10 euro cents per liter from November 1 to December 31.
These new discounts granted by TotalEnergies replace the “summer discount” applied only at the group’s motorway stations. A discount which applies to the discount of 18 cents set up by the State and which should increase to 30 cents in September.