TotalEnergies posted huge profits in the second quarter, taking full advantage of the surge in oil and gas prices that followed Russia’s invasion of Ukraine, and reigniting the beginnings of a debate over the taxation of “super profits.” .
The French group more than doubled its net profit in the second quarter, to 5.7 billion dollars, compared to 2.2 billion in the same quarter of 2021. During the first six months of the year, the oil giant registered a reported net profit of 10,600 million dollars and adjusted net income of $18.8 billion.
“Adjusted net income excludes the effect of inventory after taxes, non-recurring items and the effects of changes in fair value,” TotalEnergies specifies in its press release. Adjusting items in net income, for example, amounted to -$4.1bn in the second quarter, in particular due to consideration of the potential impact of international sanctions on the value of its stake in Russia’s Novatek.
This increase in markets benefits the entire oil and gas industry globally. The British oil giant Shell thus published on Thursday a net profit multiplied by five in the second quarter, up to 18,000 million dollars.
These massive profits have fueled a debate in France about whether to tax them. The National Assembly, however, on Saturday narrowly rejected the idea of a tax on “super-profits” or “one-off profits” by big multinationals – particularly oil companies – despite protests from the left and far right.
Instead, TotalEnergies announced a discount of 20 eurocents per liter of fuel at the pump between September and November at all its service stations, then 10 eurocents per liter for the rest of the year.
Exceptional tax rejected
“The government has rejected an exceptional tax on profits linked to the increase in energy,” lamented Nupes-PS deputy Valérie Rabault on Thursday, citing TotalEnergies’ adjusted half-year profit of 18.8 billion. “Compared to the 500 million granted for the reduction in the price at the pump,” she added on Twitter.
“The Government is content with a reduction of 500 million euros. More than ever, the tax on super-profits must be launched,” LFI deputy Manuel Bompard has claimed.
“When you refuel your car to go to work or on vacation, remember that every penny will be used to fatten a shareholder. And that the State has done nothing to freeze prices. Only one solution: tax these war profiteers!” he attacked the communist Fabien Roussel.
The environmental NGO 350.org, for its part, denounced a “staggering” profit, while “the oil giant is responsible for some of the most destructive fossil fuel projects on the planet”, citing in particular a controversial oil pipeline project in Africa Oriental.
“There is already a tax that exists on profits,” replied Aurore Bergé, patron saint of Renaissance deputies, on Franceinfo. France is “the European country, just after Denmark, that has the highest level of mandatory taxes,” she argued, advocating “stability” in fiscal matters.
Symbolically, on this day of the publication of flourishing results, some of the group’s employees went on strike at the call of the CGT, in order to “maintain the pressure” and demand salary increases taking into account inflation, according to Thierry Defresne, Secretary of the CGT. of the European Works Council of TotalEnergies SE.
“The shareholder return policy is reinforced by the dividend growth of 5% and the continuation of the share repurchase program worth 2,000 million dollars in the third quarter,” the band stressed for its part.
Source: BFM TV
