TotalEnergies Keeps Share Buybacks Despite 23% Profit Decline and Rising Debt Amid Falling Oil Prices

By Okafor Joseph | July 29, 2025 | SpringnewsNG Media Limited

TotalEnergies SE, the French energy giant, has reported its worst quarterly performance in four years, with second‑quarter 2025 earnings down 23% as weaker oil and gas prices outweighed higher production and power sales.

The company’s adjusted net income fell to $3.6 billion for the three months ending June 30, compared with $4.7 billion in Q2 2024 and $4.2 billion in Q1 2025, according to a Reuters report.

Despite the earnings slump, TotalEnergies said it would continue its share buyback program, signaling commitment to shareholder returns even as its net debt rises.

Oil Price Drop Pressures Earnings

The decline in profits coincided with a 20% drop in Brent crude prices compared to a year ago, averaging $67.9 per barrel in Q2 2025. The price drop followed the partial unwinding of 2.17 million barrels per day in production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia in April.

The lower commodity prices have offset gains from increased oil and gas output as well as stronger power sales, highlighting the vulnerability of energy majors to volatile oil markets.

CEO Reassures Investors on Returns

On an analyst call, TotalEnergies CEO Patrick Pouyanne addressed concerns over rising net debt, emphasizing that the company’s capital discipline and cash flow allow it to maintain shareholder distributions, even in a low oil price environment.

“We remain committed to our buyback program and dividend policy, while continuing to focus on cost discipline and long‑term energy transition investments,” Pouyanne said.

Outlook Amid Energy Market Volatility

Energy analysts note that TotalEnergies’ strategy of maintaining shareholder payouts reflects confidence in its diversified portfolio, which includes renewables and power generation.

However, with oil prices under pressure and geopolitical uncertainty affecting global supply and demand, the company faces the dual challenge of protecting profitability while managing debt and funding its energy transition goals.