French oil giant TotalEnergies' adjusted net income fell to $3.6bn (€3.07bn) for the second quarter of 2025 (Q2 2025), down from $4.7bn in the same period last year.
The decline was attributed to lower oil and gas prices, which overshadowed gains from increased production and power sales.
The company’s first-half adjusted net income stood at $7.8bn.
Net debt surged by 89% compared to the previous year, reaching $25.9bn. This increase in debt pushed the gearing ratio, including leases, to 22.6%.
Despite this, TotalEnergies continued its share buyback programme, extending a $2bn buyback into Q3.
CEO Patrick Pouyanne clarified that the company's normalised gearing ratio, which measures debt to equity, stood at 15%, reported Reuters.
He assured that this figure would remain stable throughout the year, bolstered by the anticipated $3.5bn in proceeds from the sale of renewable asset stakes and the disposal of mature oil and gas assets in Nigeria, Brazil and other regions.
Despite a 14% rise in quarterly profit to $574m in TotalEnergies' integrated power business, this was not enough to counteract weaker performances in other divisions.
The refining and chemicals segment saw earnings plummet by 39% from the previous year.
The refining margin for converting crude into fuels also dropped by 21% year-on-year (YoY) to $35.3 per tonne (t), although there is an expectation that margins will improve to above $50/t in Q3 due to heightened fuel demand during Europe's summer driving season.
The integrated liquefied natural gas (LNG) unit reported a 9.6% decrease in profit YoY and a 20% fall from Q1 2025. The subdued prices and lack of volatility restricted traders' ability to capitalise on price fluctuations.
Looking ahead, TotalEnergies forecasts a 3% rise in hydrocarbon production in Q3 compared with the same period last year.
Earlier this month, the Government of Mozambique established essential conditions for the revival of TotalEnergies' $20bn LNG project.
The project, which was suspended in 2021 because of an insurgency linked to the Islamic State, is now set to resume.
