TotalEnergies, the French energy company, reported a 23% year-over-year decline in adjusted net income for Q2 2025. Earnings fell to $3.6 billion from $4.7 billion a year earlier. This marks its weakest quarterly performance since 2021. Despite producing more oil and gas, falling energy prices dragged profits down.
Oil Prices Take a Hit
The biggest factor behind the drop was a roughly 20% fall in Brent crude prices. This decline came after OPEC+ started phasing out 2.17 million barrels per day in production cuts from April. The move increased global supply and pushed prices lower.
Refining and Chemicals Hit Hard
The impact extended beyond upstream operations. Refining margins dropped 21% as weak demand and tough global competition squeezed profits. The refining and chemicals segment saw a 39% year-over-year fall in earnings.
LNG Unit Sees Profit Erosion
TotalEnergies’ liquefied natural gas business, which is seen as a key growth area, also lost momentum. Profits were down 9.6% from Q2 last year and dropped another 20% compared to Q1 2025. This slide was driven by lower and more stable gas prices, which reduced trading opportunities.
Power Division Performs Better
One bright spot was the integrated power unit, which includes electricity and renewables. It posted a 14% profit increase, reaching $574 million. That result stood out amid a largely weak quarter.
Share Buybacks and Production Outlook
To reassure investors, TotalEnergies confirmed a $2 billion share buyback for Q3. The company also expects hydrocarbon output to rise by around 3% year-over-year. Both moves show management’s belief in the long-term strength of its business.
What This Really Means
Earnings vulnerability
These results highlight how exposed TotalEnergies is to commodity price swings. Even with higher production, falling prices erased gains.
Portfolio resilience
Diversifying into LNG and power helped cushion the blow. LNG earnings fell, but the power business held up well.
Management confidence
The share buyback and production forecast suggest leaders believe this is a short-term dip, not a lasting downturn.
Final Take
TotalEnergies is facing a rough patch. A global oil surplus and shrinking margins are cutting into profits. Still, the company’s diversified portfolio and investor-focused policies show it’s playing the long game.
If energy prices stabilize, a rebound could be on the way. But this quarter is a clear reminder that even the biggest industry players can take a hit when the cycle turns.
