TotalEnergies back in profit as oil prices rebound

TotalEnergies announced Thursday it had bounced back into profit in the second quarter thanks to the rise in global oil prices.

The French firm, previously known as Total, posted a net profit of $2.2 billion (1.9 billion euros) in the period from April through June.

That compared with a loss of more than $8 billion during the same period last year, which was mostly due to writing down the value of its assets in light of the drop in oil prices, which briefly turned negative as large parts of the global economy were shut due to the Covid-19 pandemic.

The company said its adjusted net income, a measure that excludes exceptional items, rose to $3.5 billion.

That beat the 126 million registered last year, but also the $2.9 billion recorded in the second quarter of 2019 before the pandemic hit.

The company announced it plans to step up payments to shareholders, including paying out a second interim dividend and dedicating to share buybacks up to 40 percent of additional cash flow from oil priced above $60 per barrel.

Shares in TotalEnergies rose 2.6 percent in morning trading, while the blue-chip CAC 40 index in Paris was up 0.8 percent overall.

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