In a released trading statement, TotalEnergies has warned that its revenues for oil and gas production are likely to drop in the second quarter.
The news comes as the price of crude oil is markedly lower than a year ago, offsetting a 2.5% year-on-year increase in hydrocarbons production. For example, a barrel of Brent crude fetched $85 in the second quarter of this year, but this has dropped 20% to $67.9 for the same quarter this year. More specifically, the company said in the statement:
“Exploration and Production results are expected to reflect the evolution of the environment ($7/b average liquids price decrease vs first quarter 2025) in line with published sensitivities, while being supported by accretive production growth both in results and cash.”
The company also said it expects its results for integrated LNG (liquefied natural gas) to reflect this environment, with LNG selling for almost a tenth less on average. TotalEnergies also makes downstream products like the Total hydraulic oil and coolant fluids. It said its results for refining and chemicals should improve in line with better refining margins and utilisation rates. The company also pointed out that it anticipates its results for integrated power to be in line with annual guidance at $500–550 million.
TotalEnergies is not the only oil major to warn of reduced earnings due to lower crude oil prices, so the news will come as little surprise. Reuters reports Giacomo Romeo, an analyst at investment bank Jefferies, as saying that the trading statement was consistent with widespread expectations.
