TotalEnergies Plunges 3.05% on 23% Earnings Drop

On July 24, 2025, TotalEnergies experienced a 3.05% drop in pre-market trading, reflecting the broader market sentiment and the company's recent financial performance.

TotalEnergies reported a 23% decline in second-quarter earnings, marking its weakest performance in four years. The drop was primarily due to lower oil and gas prices, which outweighed increases in production and power sales. The company's adjusted net income fell to $3.6 billion, down from $4.7 billion a year earlier and $4.2 billion in the first quarter.

The decline in earnings was further exacerbated by a significant increase in net debt, which jumped 89% year-on-year to $25.9 billion. This surge in debt was driven by acquisitions and heavy spending on projects, even as the company extended a $2 billion share buyback into the third quarter. The company's gearing, a measure of debt to equity, reached 22.6% including leases.

TotalEnergies also faced challenges in its refining and chemicals segment, where earnings fell 39% from a year ago. The margin for refining crude into fuels dropped 21% to $35.3 per ton, despite a slow recovery in the first half of 2025 from a collapse the previous year due to sagging demand and increased global competition.

Despite these challenges, the company's integrated power unit performed well, with a 14% rise in profit to $574 million. TotalEnergies also forecast a 3% increase in hydrocarbon output in the third quarter against the same period a year ago, indicating some optimism for the future.