Shell, TotalEnergies: la flambée des prix propulse les bénéfices des pétroliers

soaring prices propel tanker profits

Shell thus published Thursday a net profit group share of 18 billion dollars for the second quarter, which also benefits from a reversal of provisions of 4.3 billion dollars, after the oil major revised upwards its projections. oil and gas prices, reversing some of the massive depreciations of the Covid-19 pandemic.

Excluding exceptional items, adjusted net profit amounted to 11.5 billion dollars, doubled over one year. And in the first half, net profit group share was almost tripled to 25 billion dollars, said Shell in a press release.

TotalEnergies, for its part, more than doubled its net profit group share in the second quarter, to 5.7 billion dollars, despite a new provision of 3.5 billion dollars linked to the potential impact of sanctions. international organizations on the value of its stake in the Russian company Novatek.

The adjusted net income of the French group reached 9.8 billion dollars over the quarter, against 3.5 billion a year earlier. Over the half-year, it totaled 18.8 billion, almost tripling compared to the first half of 2021.

Shell “Recorded strong financial results in the second quarter”, welcomed its managing director, Ben van Beurden. This is evidenced by a $6 billion share buyback program to be executed in the current quarter, after a previous buyback of $8.5 billion completed in early July.

But “With volatile energy markets, economic turmoil and the need to act on climate change, 2022 continues to present challenges for consumers, governments and businesses”he warned.

The memory is still fresh of the colossal losses announced by oil giants struck down, around the globe, by the brutal collapse of consumption during the pandemic. Shell had, for example, taken a charge of $16.8 billion in the second quarter of 2020.

But oil prices have since rebounded and have been soaring for months, especially since the Russian invasion of Ukraine.

Gas prices, which had fallen after the peaks reached in March shortly after the start of the conflict, soared again, after the reduction in Russian deliveries, and have returned in recent days to the levels of then.

Shell had already reported record first-quarter profit of $7.1 billion, despite a $3.9 billion after-tax charge related to the phasing out of its oil and gas business in Russia.

“It is inevitable that with such strong results, the way the company uses its profits will come under scrutiny”said Michael Hewson, an analyst at CMC Markets.

The company was notably heckled during its general meeting in May, accused of not going far enough in its climate strategy (adopted by nearly 80%), between the irruption of activists and a litany of questions from shareholders.

But soaring profits “also raises the question of whether Shell will be able to maintain this level of profitability in the second half of the year”adds Hewson.

Faced with the profits of the oil majors, London announced in May an exceptional tax on the energy sector, in part to help finance government aid to the poorest households in the face of the cost of living crisis.

In France, these huge oil profits have also fueled a debate on a tax on “superprofits” large multinationals, narrowly rejected on Saturday by the National Assembly despite protests from the left and the far right.

On the stock market Thursday mid-morning, the action of TotalEnergies fell 2.40% to 48.57 euros and that of Shell took 1.30% to 2,145 pence.

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