Oil giant TotalEnergies reveals big drop in profits, but plans more payouts to shareholders
On Wednesday, April 30, TotalEnergies, one of the world’s largest energy companies, said that its profits fell sharply in the first few months of the year—even though it made more oil and gas.
The company made $3.9 billion in profit during the first quarter, which is about one-third less than it earned during the same time in 2024. The reason? The price of oil dropped around the world, and that hurt the company’s earnings.
Even though TotalEnergies pumped 2% more oil and 6% more gas, it wasn’t enough to make up for the lower oil prices. The main type of oil used to measure prices around the world, called Brent crude, fell by 9%. This drop happened as new trade tariffs—set by U.S. President Donald Trump’s administration—led to worries that the world economy might slow down and use less energy.
There were some bright spots: electricity production went up by 18%, and gas prices rose by nearly 30%. But liquefied natural gas (LNG) only grew by 4%.
Even with these challenges, TotalEnergies is sharing more money with its investors. CEO Patrick Pouyanne said that, “despite a softening price environment with Brent below $70 per barrel since the beginning of April and an uncertain geopolitical and macroeconomic context,” the company would raise its dividend by 7.6% and buy back up to $2 billion worth of its own shares.
The company is still planning to invest between $17 and $17.5 billion this year, even though it warned that oil prices could continue to swing between $60 and $70 per barrel, and that profits from refining and chemicals might stay low.
