France’s TotalEnergies said it would carry out more share buybacks in the months ahead after its adjusted net income nearly tripled in the second quarter to $9.8bn on soaring gas prices and rising refining margins.
The group is among oil and gas majors benefiting from rising commodities prices as the war in Ukraine exacerbates an energy crisis in Europe. Total’s net income reached $5.7bn in the second quarter, even as it took a fresh $3.5bn impairment charge on its operations in Russia.
The charge was linked to the value of its 19.4 per cent stake in independent gas producer Novatek due to the potential effect of international sanctions. Total had previously recorded a $4.1bn hit from its Russian business. The company has said it will phase out its activities there when it can find suitable buyers.
Total said on Thursday it would carry out share buybacks of up to $2bn in the third quarter, after a programme of up to $3bn in the first half of the year. The group also increased its total investment budget for 2022 to $16bn from $15bn previously. A quarter of that is earmarked for spending on renewable energy and electricity operations.
The oil and gas bonanza has fuelled calls from opposition parties in France for a windfall tax targeted at Total. President Emmanuel Macron’s government has so far dismissed the need for additional levies, opting instead to encourage the company to cut prices at the pump in the coming months.
From Financial Times
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