TotalEnergies Posts Lower Q2 Earnings Amid Market Challenges, Net Debt Surges

TotalEnergies' Q2 2025 adjusted net income fell to $3.6bn, down from $4.7bn in the same period last year. The decline was attributed to lower oil and gas prices, despite increased production and power sales. Net debt surged by 89% to $25.9bn, but the company expects to stabilize its gearing ratio at 15% throughout the year. The refining and chemicals segment saw earnings plummet by 39% YoY.

TotalEnergies SE reported a 23% fall in second-quarter earnings, marking the company's worst performance in four years. The French oil major's adjusted net income fell to $3.6 billion for the three months to June 30, down from $4.7 billion a year earlier and $4.2 billion in the first quarter [1]. The decline was attributed to lower oil and gas prices, despite increased production and power sales.

Brent crude prices have fallen 20% from a year ago, reaching $67.9 per barrel in the second quarter of 2025. This drop in prices, along with a 39% year-over-year decline in earnings from refining and chemicals, significantly impacted TotalEnergies' financial performance [2].

TotalEnergies' net debt surged by 89% year-on-year to $25.9 billion, pushing its gearing ratio to 22.6% including leases. Despite this, the company expects to stabilize its gearing ratio at 15% throughout the year. CEO Patrick Pouyanne assured analysts that the company could maintain shareholder returns in a low oil price environment [3].

The company's integrated power business posted a higher-than-expected profit of $574 million, up 14% year-on-year. However, this was not enough to offset the poor performance across nearly all other units. TotalEnergies expects refining margins to rise above $50 per ton in the third quarter due to increased fuel demand during Europe's summer driving season [3].

TotalEnergies' hydrocarbon output is expected to increase by 3% in the third quarter compared to the same period a year ago. The company's strategic execution, including early production from the Ballymore field in the U.S. and Mero-4 in Brazil, has contributed to this growth [4].

References:
[1] Reuters. (2025, July 24). TotalEnergies posts 23% drop in quarterly income as oil, gas prices sag. Retrieved from https://www.reuters.com/business/energy/totalenergies-posts-23-drop-quarterly-income-oil-gas-prices-sag-2025-07-24/
[2] Business Wire. (2025, July 25). TotalEnergies Publishes Its Financial Report for First Half 2025. Retrieved from https://www.businesswire.com/news/home/20250725279254/en/TotalEnergies-Publishes-Its-Financial-Report-for-First-Half-2025
[3] Reuters. (2025, July 24). TotalEnergies maintains buybacks despite profit drop, rising debt. Retrieved from https://www.reuters.com/business/energy/totalenergies-maintains-buybacks-despite-profit-drop-rising-debt-2025-07-24/
[4] Oil Price. (2025, July 24). TotalEnergies Posts $36 Billion Q2 Profit Amid Oil Price Slide. Retrieved from https://oilprice.com/Company-News/TotalEnergies-Posts-36-Billion-Q2-Profit-Amid-Oil-Price-Slide.html