This is one of the most criticized consequences of Russia’s invasion of Ukraine. French oil groups TotalEnergies and British Shell saw their net income jump in the second quarter of 2022 due to a general increase in electricity and gas prices, according to figures published Thursday, July 28.
As a result, the net profit share of TotalEnergies more than doubled in one year, to 5.7 billion dollars. Shell’s was multiplied by five, reaching 18 billion dollars in the same period.
Direct consequence of the war in Ukraine
Regarding the French group, the profit was made despite a new provision of 3.5 billion dollars linked to the potential impact of international sanctions on the value of its stake, up to 19.4%, in Russian company Novatek, explained the group in a press release. .
During the semester, the group amounted to 18.8 billion euros in revenue, almost triple the first half of 2021.
In addition to the rise in hydrocarbon prices, Shell’s results benefited from a change in provisions of 4.3 billion dollars, after the major revised upward its projections of oil and gas prices, medium and long gas term.
“The effects of Russia’s invasion of Ukraine on energy markets continued in the second quarter, with oil prices exceeding $110 per barrel on average during the quarter”commented the Chairman and Chief Executive Officer (CEO) of TotalEnergies, Patrick Pouyanné, in the press release.
This surge in markets has benefited the entire oil and gas industry worldwide. The Norwegian energy group Equinor thus announced on Wednesday that it earned a net profit in the second quarter of almost 6.8 billion dollars, against 1.9 billion dollars in the same period in 2021, a result of almost four times. .
A benefit rejected by environmental associations and nothing
In France, these results, linked to the unique circumstances, initiated a political debate on the feasibility of taxing them. The National Assembly, however, narrowly rejected on Saturday the idea of a tax on “super profit” hope “wind gain” multinationals – especially gas and oil – despite protests from the left and far right and the fact that some LR deputies came out in favor of the measure.
However, encouraged by the government, TotalEnergies announced a new discount of 20 cents per liter of fuel at the pump between September and November at its stations in France. In June, the company has already obtained an increase in its discount on the liter of gasoline from 10 to 12 cents.
“The government rejects an extraordinary income tax linked to the energy increase”regretted Thursday the socialist deputy and vice-president of the National Assembly Valérie Rabault on Twitter.
Citing a half-year adjusted profit of 18.8 billion from TotalEnergies, he was hurt by this amount “compared to the 500 million given for reducing the price of the pump” in the French group.
The environmental NGO 350.org, for its part, criticized a result “awful”while “The oil giant is responsible for some of the most destructive fossil fuel projects on the planet”which deals with the company’s controversial pipeline project in East Africa.
Symbolically, on this day of the publication of the successful results, some of the group’s employees went on strike at the call of the General Confederation of Labor (CGT), to “keep the pressure on” to manage and demand a wage increase to take inflation into account, according to Thierry Defresne, CGT secretary of the European works council TotalEnergies SE.