LBritish giants Shell and French TotalEnergies saw their net profits jump in the second quarter, taking full advantage of the rise in oil and gas prices following Russia’s invasion of Ukraine, according to results published Thursday .
Shell’s group share net profit was multiplied by five, to 18 billion dollars. And that of TotalEnergies has more than doubled over one year, to 5.7 billion dollars. In addition to the rise in hydrocarbon prices, Shell’s results benefited from a reversal of provisions of 4.3 billion dollars, after the major revised upwards its medium and long-term oil and gas price projections. .
Regarding TotalEnergies, 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 in Russian Novatek, the group said in a press release.
“The effects of Russia’s invasion of Ukraine on energy markets continued into the second quarter, with oil prices exceeding $110 per barrel on average in the quarter,” commented TotalEnergies CEO Patrick Pouyanné, quoted in the press release.
This surge in markets benefits the entire oil and gas industry globally. The Norwegian energy giant Equinor announced on Wednesday that it had earned a net profit in the second quarter of close to 6.8 billion dollars, against 1.9 billion dollars in the same period of 2021.
In France, these benefits have fueled a debate on the advisability of taxing them. The National Assembly, however, narrowly rejected on Saturday the idea of a tax on the “superprofits” or “exceptional profits” of large multinationals – in particular oil companies – despite protests from the left and the far right. Instead, TotalEnergies announced a discount of 20 cents per liter of fuel at the pump from September in France.