TotalEnergies Net Income Dips 29% Amidst Challenging Market

TotalEnergies reported a decrease in key financial metrics for Q2 2025. Revenue for the quarter stood at $44.68 billion, marking a 9.9% year-over-year decline from $49.18 billion in Q2 2024. Net income attributable to TotalEnergies shareholders also fell to $2.69 billion, a 29% drop compared to $3.79 billion in the same period last year. Adjusted net income, which excludes certain non-recurring items, was $3.58 billion, representing a 23.3% decrease year-over-year. The company's fully-diluted earnings per share (EPS) for Q2 2025 was $1.17, missing the analyst estimate of $1.62.

Hydrocarbon Production Dynamics

Total hydrocarbon production in Q2 2025 was 2,503 thousand barrels of oil equivalent per day (kboe/d), a 2.5% year-over-year increase from 2,441 kboe/d in Q2 2024. This growth was primarily driven by start-ups and ramp-ups of new projects such as Mero-2, Mero-3, and Mero-4 in Brazil, Fenix in Argentina, Tyra in Denmark, and Anchor and Ballymore in the United States, contributing +5.5%. The positive impacts were partially offset by increased planned maintenance (-2.5%) and natural field declines (-2.5%).

Integrated LNG Segment Performance

The Integrated LNG segment’s adjusted net operating income was $1.04 billion in Q2 2025, a 9.6% year-over-year decrease from $1.15 billion in Q2 2024. This decline was primarily attributed to lower average LNG selling prices, reflecting the evolution of oil prices and reduced market volatility in gas trading activities. Hydrocarbon production for LNG was also down 6% quarter-over-quarter due to scheduled maintenance at Snøhvit in Norway and Malaysia LNG, impacting SK408 production.

Integrated Power and Downstream Operations

Net power production increased by 28% year-over-year to 11.6 TWh in Q2 2025, driven by growth in renewable energy production and the acquisition of flexible gas capacities in the United Kingdom in 2024. The gross installed renewable power generation capacity reached 30.2 GW by the end of Q2 2025, up 26% year-over-year. In the downstream segment, Refining & Chemicals saw its adjusted net operating income rise by 29% quarter-over-quarter to $389 million, benefiting from slightly better refining margins and utilization rates. Marketing & Services experienced a significant 72% quarter-over-quarter increase in adjusted net operating income to $412 million due to seasonal effects and improved unit margins.

Management Outlook

Despite an unstable geopolitical and macroeconomic environment, TotalEnergies anticipates hydrocarbon production in Q3 2025 to increase by over 3% compared to Q3 2024, aligning with the company's annual objective of over 3% production growth in 2025. Refining and petrochemical margins are expected to be above $50/ton at the beginning of Q3 2025 due to stronger summer demand. Forward European gas prices are projected to remain sustained around $12/Mbtu for Q3 2025 and winter 2025/26. The company expects an average LNG selling price of $9 to $9.5/Mbtu for Q3 2025, and net investments for the full year are expected to be within the $17-17.5 billion guidance range, supported by planned disposal programs in the second half of the year.